Ethylene prices rise in August, European crackers' profit margins rise

On Monday, ICIS profit analysis showed that due to the increase in ethylene prices in August, the profit of European contract crackers increased week-on-week.

　　 As the cost of naphtha increased slightly last week, crackers using naphtha performed better than crackers based on liquefied petroleum gas.

　　 The reference price of the European ethylene contract in August was set at 785 euros/ton, an increase of 21 euros/ton from July.

　　 In the week ending August 7:

　　 The cost of naphtha has risen by more than 1%

　　Liquefied petroleum gas value increased by 6%

　　 The profit margin of naphtha-based contracts rose by 26%, and the value of by-products increased slightly.

　　 LPG contract profit margin increased by 9%, and by-product credit increased slightly.

　　 In the week ending July 7, despite some unexpected cracker problems, demand was flat and supply was sufficient.

　　 Spot prices are flat because the market is calm.

　　 The spot profits of naphtha and LPG declined slightly, because the cost of raw materials increased, and the profit of the LPG process dropped more.