European Chemicals: Key movements in petrochemical pricing/margins/spreads

Research evidence excerpt

European Chemicals: Key movements in petrochemical pricing/margins/spreads

Deutsche Bank

Research

Europe Industry Date

France 16 June 2026

Germany European

Industry Update

Chemicals Chemicals

Bulk

Key movements in petrochemical

pricing/margins/spreads

Virginie Boucher-Ferte

We note the following key movements (pricing/margin/spreads) by product Research Analyst

chain and their relevance by company +33-1-4495-5934

C2 -- Relevant for BASF

Tristan Lamotte

1. In Europe, ethylene-naphtha margins in Jun-26 increased 26% MoM (vs. May- Research Analyst

26), driven by lower production costs, more than offsetting lower ethylene prices. +44-20-7547-1862

On a YoY basis, margins increased materially (>100%), driven by higher ethylene

Saurabh Mehndiratta

prices and lower production costs. In the US, ethylene-naphtha margins in Jun-26

Research Associate

declined 19% MoM, due to lower ethylene prices and higher production costs

MoM. On a YoY basis, margins increased 50%, driven by higher ethylene prices and

lower production costs. Rajiv Dalal

2. In Asia, ethylene-naphtha spreads in Jun-26 increased 15% MoM, driven by

lower naphtha prices, more than offsetting lower ethylene prices. On a YoY basis, Dimitri Druart

spreads declined 3%, due to higher naphtha prices, more than offsetting higher Research Associate

ethylene prices. In Europe, ethylene-naphtha spreads in Jun-26 increased 8% +33-1-4495-5937

MoM, driven by lower naphtha prices, more than offsetting lower ethylene prices.

On a YoY basis, spreads increased 64%, driven by higher ethylene prices, more than

offsetting higher naphtha prices.

C3 -- Relevant for BASF

3. In Asia, propylene-naphtha spreads in Jun-26 increased 43% MoM, driven by

lower naphtha prices, more than offsetting lower propylene prices. On a YoY basis,