Naphtha-based ethylene cracker margins fall on feedstock gains, forex

LONDON (ICIS)–European contract and spot ethylene cracker margins based on naphtha feedstock have slipped week on week, according to ICIS margin analysis on Monday.

In the week to 18 August, euro-denominated naphtha costs rose by 2%.

Naphtha-based contract cracker margins fell by 5% on the back of the higher naphtha and were additionally impacted by a 1% decline in co-product credits.

Naphtha-based spot cracker margins were 3% lower week on week, co-product credits were flat. US dollar denominated ethylene spot prices were flat but the dollar was 1% firmer against the euro.

Contract cracker margins based on LPG (liquefied petroleum gas) were slightly lower week on week. Euro-denominated LPG costs and co-products credits were largely flat.

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Pictured: BASF’s steam cracker II at Ludwigshafen, Germany (source: BASF)