Spot steam cracker margins in Europe peak to four week high amid ethylene hike

06-Jun-14

European spot steam cracker margins hit a near month high of Eur 72/mt (US$98/mt) on Wednesday on the back of an increase in ethylene, as per Platts. Ethylene spot prices Wednesday reached their highest point since the end of February at Eur 942.50/mt FD NWE, as exports and domestic sales helped alleviate length in the NWE system. Feedstock naphtha also edged up, limiting the increase in the margins. Naphtha averaged US$938/mt CIF NWE in May, up 1.3% from April. Naphtha was assessed at US$930.75/mt CIF NWE Wednesday. Ethylene spot prices, however, remain at a discount to the monthly contract price of Eur 1,170/mt FD NWE, a reflection of supply outpacing demand in the ethylene market.