Europe cracker margins up 24% on weaker naphtha

LONDON (ICIS)–European contract cracker margins rose by nearly a quarter week on week because of a fall in feedstock naphtha costs, according to ICIS analysis on Monday.

In the week ending 13 September, a drop of $29/tonne (€21.75/tonne) combined with a 0.8% weaker dollar led to a 3.8% drop in euro-based naphtha costs. Co-product credits fell by 1.8% on weaker pyrolysis gasoline (pygas) and raffinate-1 values.

Spot margins also strengthened on the back of the softer naphtha costs. Spot co-product credits fell by 1.6% as lower pygas and raffinate-1 values outweighed higher spot butadiene (BD) prices. The weaker dollar impacted on spot ethylene prices although in dollar terms they were unchanged.

Contract cracker margins based on liquefied petroleum gas (LPG) rose by €48/tonne as liquefied petroleum gas (LPG) prices slipped by 3.2%. LPG contract margins are at their highest level since the end of June.

($1 = €0.75)

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