LONDON (ICIS)--European spot and contract cracker margins based on naphtha feedstock have risen considerably week on week, according to ICIS margin analysis on Monday.
In the week to 2 September, euro-denominated naphtha costs fell by 9% leading to a 19% rise in both spot and contract margins. This is the highest weekly spot margin to be seen in 2016 so far, while the contract margin is the highest seen since the end of July.
Co-product credits in both instances were largely steady. Spot ethylene prices were unchanged in dollar terms but the dollar strengthened by 1% against the euro.
Contract cracker margins based on LPG (liquefied petroleum gas) rose by 4% because of a 3% fall in LPG costs and a 1% gain in co-product credits.
The September ethylene contract price settled at €925/tonne FD (free delivered) NWE (northwest Europe), a rollover from August.
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