LONDON (ICIS)--European contract cracker margins based on naphtha feedstock have fallen by 5% following the €35/tonne ($47/tonne) decrease in the ethylene contract price for October, according to ICIS analysis on Tuesday.
In the week ending 4 October, the lower ethylene contract price and weaker co-product credits outweighed a 2.2% declined in euro-based naphtha costs. These fell because of a $17/tonne drop in prices and a 0.3% weaker dollar. Co-product credits dropped by 2.4% on the back of the lower propylene and benzene October contract price settlements.
Spot margins rose by €36/tonnne on the back of the lower naphtha costs. Co-product credits slipped by 0.6%.
Contract margins based on liquefied petroleum gas (LPG) slumped by 9% because of the lower ethylene contract price and 2.4% lower co-product credits. LPG prices were down by 0.6%.
($1 = €0.74)
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