European spot steam cracker margins hit a near month high of Eur72/mt ($98/mt) Wednesday on the back of an increase in ethylene.
Ethylene spot prices Wednesday reached their highest point since the end of February at Eur942.50/mt FD NWE, as exports and domestic sales helped alleviate length in the NWE system, sources said.
Feedstock naphtha also edged up, limiting the increase in the margins. Naphtha averaged $938/mt CIF NWE in May, up 1.3% from April.
Naphtha was assessed at $930.75/mt CIF NWE Wednesday.
Ethylene spot prices, however, remain at a discount to the monthly contract price of Eur1,170/mt FD NWE, a reflection of supply outpacing demand in the ethylene market.
Hydrocarbons like naphtha and LPG are used in a steam cracker to producer olefins such as ethylene.
