Europe cracker margins rise as feedstock costs fall

LONDON (ICIS)–European ethylene cracker margins have risen week on week on the back of decreases in naphtha and liquefied petroleum gas (LPG) values, ICIS margin analysis showed on Monday.

In the week to 12 October, euro-denominated naphtha and LPG values fell by 6.92% and 6.05%, respectively.

Naphtha-based contract cracker margins rose by 31.46%, with co-products credits 2.45% lower week on week.

Spot naphtha-based margins rose 42.14%, overriding a 2% drop in spot ethylene prices.

Co-products credits were down 3.73% week on week.

LPG-based contract margins rose by 16.15% week on week. Co-products credits were down by 1.13%.

The LPG margin advantage has decreased to €93/tonne, down from €127/tonne in the week ending 5 October.

 

Top picture source: OJO Images/REX/Shutterstock

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