LONDON (ICIS)--European contract cracker margins based on liquefied petroleum gas (LPG) fell week on week on higher feedstock costs and lower ethylene prices, ICIS margin analysis showed on Monday.
Margins for naphtha-based crackers were largely flat.
In the week to 18 October:
- Naphtha values fell by less than 1%
- LPG costs rose by 2%
Naphtha-based contract margins decreased by less than 0.5%, co-product credits were flat:
LPG-based contract margins fell by 4%, co-product credits were flat:
Contract margins by feedstock:
Spot margins by feedstock:
Spot naphtha-based margins fell by 10%.
Spot ethylene prices decreased over the last week as demand was low and supply remained ample, with further cracker re-starts expected after the recent maintenance period comes to an end.
Co-products credits remained flat.
Demand was weak across all derivatives and sources reiterated that there is unlikely to be any real improvement given the time of year.
Picture source: Source: Creativ Studio Heinemann/imageBROKER/Shutterstock
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