European Chemicals: Industry Update

Research evidence excerpt

European Chemicals: Industry Update

Deutsche Bank

Research

Europe Industry Date

France 22 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

Research Analyst

1. In Europe, ethylene-naphtha margins in Jun-26 increased 30% MoM (vs. May-

+44-20-7547-1862

26), driven by lower production costs, more than offsetting lower ethylene prices.

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 24% MoM, due to lower ethylene prices and higher production costs. On

a YoY basis, margins increased 40%, driven by higher ethylene prices and lower Rajiv Dalal

production costs. Research Associate

2. In Asia, ethylene-naphtha spreads in Jun-26 increased 12% MoM, driven by

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

spreads declined 5%, due to higher naphtha prices, more than offsetting higher

ethylene prices. In Europe, ethylene-naphtha spreads in Jun-26 increased 8%

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

On a YoY basis, spreads increased 63%, 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 36% MoM, driven by

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

spreads increased materially, driven by higher propylene prices, more than