Europe cracker margins firmer again on weaker naphtha, LPG feed

LONDON (ICIS)–European ethylene cracker margins have risen for the second consecutive week on the back of an ongoing decline in euro-denominated feedstock costs, according to ICIS margin analysis on Monday.

In the week to 2 November, both naphtha and LPG (liquefied petroleum gas) values softened by 7% week on week.

Naphtha-based contract cracker margins  increased by 15%, co-product credits dropped by 3% week on week.

Naphtha-based spot cracker margins increased by 22%, even with a 5% fall in co-product credits.

Spot naphtha-based cracker margins have increased by 50% over the past two weeks, but actual spot market prices remain significantly softer than the prevailing contract reference price.

LPG-based contract cracker margins rose by 7%, but co-product credits were 3% lower.

The LPG contract cracker margin advantage was €119/tonne, down from €151/tonne in the week ending 26 October.

The ethylene contract reference price for November settled down by €10/tonne from October to €1,135/tonne FD (free delivered) NWE (northwest Europe).

Pictured: BASF steam cracker (source: BASF)