LONDON (ICIS)--European naphtha-based ethylene cracker margins have fallen week on week on the back of a rise in euro-denominated feedstock costs, according to ICIS margin analysis on Monday.
In the week to 7 April, contract cracker margins fell by about 9% to their lowest level since early March following a 4% increase in naphtha feedstock costs. Co-product credits were down by 1%.
Spot naphtha-based margins fell by 2% because of the increase in naphtha costs and also the weaker euro – US dollar-based ethylene spot prices were unchanged in dollar terms. Spot co-product credits were up by 2% which partly offset the feedstock increases.
Liquefied petroleum gas (LPG)-based cracker margins were flat week on week. Euro-denominated LPG costs rose by 1%, while co-product credits were also up by around 1%.
LPG contract cracker margins are now for the first time since December 2016, at a premium over naphtha-based contract margins.
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