Europe contract cracker margins rise on softer naphtha, LPG

LONDON (ICIS)–European contract cracker margins rose in the week ending 9 June on the back of reductions in naphtha and LPG values, according to ICIS margin analysis on Monday.

Euro-denominated naphtha and LPG (liquefied petroleum gas) costs both fell by 4% in the week to 9 June.

Contract naphtha-based margins were 6% higher, despite a 1% drop in co-product credits.

Contract LPG-based margins were 3% higher but co-product contract LPG credits were 1% lower.

Spot naphtha-based margins bucked the trend, softening by 1%, largely because spot ethylene prices were 2% lower week on week, but a 5% decline in spot co-product credits also added to the decline in the overall spot margin.

Spot prices have been softening over the past couple of weeks because of a combination of improved supply and reduced affordability for some derivatives.

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