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)