Europe cracker margins rise on naphtha, LPG falls week on week

LONDON (ICIS)–European ethylene cracker margins have risen following reductions in feedstock naphtha and LPG costs week on week, reversing the previous week’s losses, ICIS margin analysis showed on Monday.

In the week to 21 April, euro-denominated naphtha and LPG (liquefied petroleum gas) costs fell by 8% and 6% respectively.

Naphtha-based contract cracker margins consequently rose by 14%, although co-products credits were 1% lower week on week.

Naphtha-based spot cracker margins rose by 6% on the back of the naphtha losses. US dollar-based ethylene spot prices were stable week on week but the euro strengthened by 1% stronger. Spot co-product credits fell by 5%.

LPG-based contract cracker firmed by 7% following the declines in LPG costs and a reduction of 1% for co-products credits.

Naphtha contract margins have regained the advantage over LPG-based contract cracker margins.

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