Europe cracker margins improve on lower naphtha costs

Nel Weddle

17-Dec-2013

LONDON (ICIS)–European contract cracker margins have increased by 18% while spot margins more than doubled on the back of lower feedstock naphtha costs, according to ICIS margin analysis on Tuesday.

In the week ending 13 December, euro-based naphtha costs were down by 2.8% because a $25/tonne ($18/tonne) fall in price combined with a 0.3% weaker dollar.

Spot margins showed the best improvement, jumping by €51/tonne to €79/tonne. This is the second consecutive week of increase. Spot margins had moved into negative territory at the end of November for the first time since December 2012. Ethylene spot prices were flat in dollar terms.

Spot co-product credits fell by 0.8% as higher spot propylene and butadiene (BD) were outweighed by lower raffinate 1 and aromatics values.

Contract cracker margins based on liquefied petroleum gas (LPG) crept up by €20/tonne on a 2.1% reduction in euro-denominated costs.

 

($1 = €0.73)

Follow Nel on Twitter

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?