Europe LPG cracker margins soar after fall in euro-based costs

LONDON (ICIS)–European contract cracker margins based on LPG (liquefied petroleum gas) have regained the advantage versus naphtha on the back of a 9.5% fall in euro-based costs, according to margin analysis on Tuesday.

In the week ending 17 January, LPG margins were up by €164/tonne as both propane and butane prices collapsed by almost $100/tonne.

Naphtha prices fell by $17/tonne but this was limited by a 0.8% stronger dollar – overall, euro-denominated naphtha costs were down by 0.9% which led to just a €21/tonne increase naphtha contract cracker margins. Co-product credits were unchanged.

Spot naphtha margins were up on lower naphtha  as well as higher co-product credits which rose 1.3% predominantly on higher spot benzene values.

Spot benzene prices reached a record high last week on the back of supply issues.

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