Europe cracker margins fall on softer June C2, by-product prices

LONDON (ICIS)–European ethylene contract cracker margins have fallen in the wake of the lower ethylene, propylene and benzene contract reference price settlements for June outweighing falls in feedstock prices, according to ICIS margin analysis on Monday.

In the week to 2 June, euro-denominated naphtha and LPG (liquefied petroleum gas) costs fell by 5% and 4% respectively. The euro strengthened 1% against the dollar.

Naphtha-based contract cracker margins fell by 6% week on week on the back of the 3% decline in the ethylene contract reference price for June and a 7% fall in co-products credits.

Naphtha-based spot cracker margins fell by 3% on the back of a 2% drop in spot prices and a 5% drop in co-products credits.

LPG-based contract cracker margins were 5% lower week on week because of the lower June ethylene contract reference price and a 7% decline in co-products credits.

Naphtha and LPG contract cracker margins are at parity.

The European ethylene contract reference price for June, settled down by €35/tonne to €1,015/tonne.

The European propylene contract reference price for June was agreed €40/tonne lower month on month, while benzene saw a €17/tonne decrease from May.

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