SUBSCRIBER NOTE: Platts proposes to refine European steam cracker margin model

Platts invites industry feedback on its proposal to refine the European steam cracker margin model. Platts Cracker Margin (PCM) calculations rely on the following formula in its spot and contract cracker margin assessments in order to derive average European economics:

PCM = 0.96*Ethylene FD NWE + 0.54*Propylene FD NWE + 0.19*benzene CIF ARA 3-30 days forward + 0.55*gasoline 10 ppm FOB Rdam barge + (-0.11*LSFO 1% CIF NWE) + (-3.13*Naphtha CIF NWE cargo).

Following reported increased efficiencies in the industry and advances in the contributions from butadiene credits, Platts proposes to refine its PCM formula to the following:

PCM= 0.96*Ethylene FD NWE + 0.54*Propylene FD NWE + 0.19*benzene CIF ARA 3-30 days forward + 0.55*gasoline 10 ppm FOB Rdam barge + 0.17*butadiene FD NWE + (-0.0935*LSFO 1% CIF NWE) + (-3.13*Naphtha CIF NWE cargo).

Please provide feedback to petchems@platts.com with cc to pricegroup@platts.com by May 2, 2013.