Article: Petrochemical earnings hit by rising feedstock costs.(Report from Europe)

DSM and Borealis see possible fourth quarter impact

Rising costs of feedstocks, particularly naphtha, are squeezing the margins of petrochemical producers in Western Europe.

Naphtha prices have increased 15 to 20 percent since last spring in the wake of rising crude oil prices. Around half the rise in the cost of naphtha, which is the main feedstock for most European ethylene crackers, has taken place over the last three months when the benchmark price of North Sea Brent crude went up by about 20 percent to $24 per barrel.

DSM warned last week that higher feedstock prices could have an impact on its fourth quarter results, particularly since it ...

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