LONDON (ICIS)--Margins at European crackers fell week on week, squeezed by higher feedstock costs, ICIS margin analysis showed on Monday.
Operators using liquefied petroleum gas (LPG) saw a bigger fall in margins than producers using naphtha.
In the week to 09 October:
- Naphtha costs rose by 5%
- LPG values were up by 11%
Naphtha-based contract margins declined by 10%, co-product credits rose slightly:LPG-based contract margins fell 17%, co-product credits rose slightly:Contract margins by feedstock:Spot margins by feedstock:
In the week to 9 October, falling spot values and increasing feedstock prices weighed on spot ethylene margins, especially at LPG-based crackers which saw LPG prices increase sharply in line with a seasonal shift in demand.
Spot demand saw an improvement during the week, but issues at derivative plants persist.
Supply remains long although some cracker issues have been reported.
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