LONDON (ICIS)--European spot naphtha-based ethylene cracker margins have risen amid tight supply, but contract cracker margins have fallen on the back of gains in both naphtha and LPG feedstock values, ICIS margin analysis showed on Tuesday.
In the week to 25 August, euro-denominated naphtha costs rose by 2%.
Spot ethylene prices were assessed on 25 August 4% firmer week on week as a series of planned and unplanned production issues has tightened spot availability. Co-product credits rose by 2%. Together these outweighed the gains in naphtha feedstock and spot margins rose by 5%.
Naphtha-based contract cracker margins fell by 3% with co-product credits remaining flat.
Euro-denominated LPG (liquefied petroleum gas) costs rose by 4% leading to a drop of 8% for contract LPG-based cracker margins.
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