LONDON (ICIS)--European ethylene cracker contract margins based on both naphtha and liquefied petroleum gas (LPG) feedstock dropped week on week, amid higher euro-denominated feedstock costs, ICIS margin analysis showed on Monday.
In the week ending 31 August, euro-denominated naphtha costs edged up by 1.6%, while LPG costs rose by 2.5%.
Naphtha-based contract cracker margins decreased by 3.1%, while naphtha-based contract co-product margins edged up by 1.1%.
Naphtha-based spot margins were 3.7% lower week on week, while naphtha-based margins for spot co-products increased by 1.1%.
LPG-based contract cracker margins decreased by 4.6%, while LPG cracker co-products inched up by 0.7%.
In the week ending 31 August, LPG-based contract cracker margins showed a premium of €79/tonne over those based on naphtha feedstock week on week.
This reflects a slight decrease in premium of LPG over naphtha based contract cracker margins –which stood at €90/tonne in week ending 24 August.
(Pictured: ExxonMobil's cracker in Baytown, US. Source: ExxonMobil)