Europe cracker margins continue to rise amid falling feedstock costs

LONDON (ICIS)–European ethylene contract cracker margins continue to rise 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 19 October, euro-denominated naphtha and LPG values fell by 1.32% and 4.89%, respectively.

Naphtha-based contract cracker margins increased by 2.77%, with co-products credits 0.93% lower week on week.

Spot naphtha-based margins fell 8.85%, co-products credits were down 2.79% week on week.

LPG-based contract margins rose by 10.51% week on week. Co-products credits were down by 0.8%.

The LPG margin advantage has increased to €139/tonne, up from €93/tonne in the week ending 12 October.

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