Europe cracker margins rise week on week on higher ethylene prices for August

Author: Miguel Rodriguez Fernandez


LONDON (ICIS)--European contract cracker margins rose week on week on the back of a higher ethylene price settlement for August, ICIS margins analysis showed on Monday.

Crackers using naphtha fared better than operators based on Liquefied Petroleum Gas (LPG) due to a smaller increase in naphtha costs over the last week.

The European ethylene contract reference price for August has been set at €785/tonne, up by €21/tonne from July.

In the week to 07 August:

  • Naphtha costs rose by more than 1%
  • LPG values increased by 6%

Naphtha-based contract margins rose by 26%, co-product values increased slightly:

LPG-based contract margins rose by 9%, co-product credits went up slightly:

Contract margins by feedstock:

Spot margins by feedstock:

In the week to 07 July, demand was flat and supply ample, despite some unplanned cracker issues.

Spot pricing remained flat as the market was very quiet.

Naphtha and LPG spot margins fell slightly as feedstock costs rose, with LPG processes showing a larger margin fall.

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