Europe naphtha contract cracker margins rise, LPG margins drop
Miguel Rodriguez Fernandez
20-Jan-2020
LONDON (ICIS)– European naphtha-based contract cracker margins in Europe have posted an uptick for the fourth consecutive week on the back of lower feedstock prices, ICIS margins analysis showed on Monday.
European producers using liquefied petroleum gas (LPG) saw their contract margins narrow week on week.
The fall was down to higher LPG prices as demand spiked due to cold temperatures in the region.
In the week to 17 January:
- Naphtha values prices decreased by 2%.
- LPG values went up by 4%
Naphtha-based contract margins increased by
more than 8%, co-product credits were
flat:
–
LPG-based contract margins fell by nearly 8%,
co-product credits were slightly up:
–
Contract margins by feedstock:–
Spot margins by feedstock:–
In the week to 17 January, margins of European
crackers based on naphtha went back to late
November levels at around $395/tonne.
Naphtha-based spot margins rose strongly in the week as ethylene prices improved and naphtha feedstock costs decreased.
LPG spot margins also showed improvement, but not to the same extent as naphtha crackers.
Supply was showing signs of tightness as there was an additional outage.
Demand remained cautious, but has improved on December.
Front page picture source: Xyz Pictures/imageBROKER/Shutterstock
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