Europe naphtha-based cracker margins fall, LPG margins rise week on week

LONDON (ICIS)–European cracker margins based on naphtha feedstock have fallen week on week, while those based on LPG have risen, according to ICIS margin analysis on Monday.

BASF’s cracker at Ludwigshafen. Source: BASF

In the week to 30 November, euro-denominated naphtha costs rose by 2%, while LPG (liquefied petroleum gas) costs fell by 5%.

Naphtha-based contract cracker margins decreased by 6%, while co-products credits were down by 2%.

Naphtha-based spot cracker margins plummeted by 41% on the back of a 10% drop in US dollar-based ethylene spot prices because of underlying weak market conditions. A 9% decline in spot co-product credits also added to the week-on-week drop.

LPG-based contract cracker margins rose  by 4% but co-products credits were down by 9% week on week.

LPG margins are once again ahead of those for naphtha, by €68/tonne.

Follow Nel on Twitter