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

LONDON (ICIS)–European cracker margins based on naphtha feedstock have risen following a fall in euro-denominated naphtha values, ICIS margin analysis has shown on Monday.

BASF’s cracker at Ludwigshafen. Source: BASF

In the week to 14 December, euro-denominated naphtha costs fell by 3%, while those for LPG (liquefied petroleum gas) rose by 4% week on week.

Contract naphtha-based cracker margins increased 8% while co-product credits were flat.

Spot naphtha-based cracker margins managed to claw back some of the previous week’s loss, rising by 30%.

Ethylene spot prices were unchanged in US dollar terms last week but the euro was 1% weaker against the US dollar. Co-product credits were flat.

Contract LPG-based cracker margins fell by about 5% week on week while co-product credits were largely flat.

The LPG margin advantage to naphtha is €119/tonne, down from €203/tonne in the week to 7 December.

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