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

21 August 2017 12:12 Source:ICIS News

BASFLONDON (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)

By Nel Weddle