Naphtha, LPG gains mean 7-9% fall for Europe ethylene cracker margins

23 August 2016 11:42 Source:ICIS News

Europe ethylene cracker margins fallLONDON (ICIS)--European ethylene contract cracker margins have fallen week on week amid a substantial rise in feedstock costs, according to ICIS margin analysis on Tuesday.

In the week to 19 August, euro-denominated naphtha costs rose by about 8% while liquefied petroleum gas (LPG) feedstock costs increased by 9%.

Contract cracker margins based on naphtha fell by about 9% to their lowest value since mid-July, mitigated in part by a 2% increase in co-product credits.

Spot naphtha-based cracker margins dropped 11% to their lowest value since early July – spot dollar-based ethylene prices were unchanged but the euro was about 1% stronger week on week, so this also negatively impacted the spot margin.

The fall could have been more if not for a 3% increase in co-product credits.


LPG-based contract margins fell 7% to their lowest value since the end of June; the drop was offset by a 2% rise in co-product credits.


Additional reporting by Tracy Dang.

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By Nel Weddle