Europe barge propane hits high of €634/tonne

06 August 2007 11:53  [Source: ICIS news]

LONDON (ICIS news)--European barge propane values have surged to an all-time high due to rising crude vales and low refinery availability, said market participants on Monday.

 

These factors led buyers to source more expensive material from terminal storage, market participants added.

 

A source at Neste Oil said that it had bought a 1,000 tonne barge for €634/tonne ($881/tonne) FOB (free on board) ARA (Antwerp, Rotterdam, Amsterdam) the previous Friday, a record high.

 

The previous high recorded by global chemical market intelligence service ICIS pricing was $620/tonne FOB ARA in January 2006.

 

“Propane has been very tight in ARA,” the Neste source said. “There is good petchem demand and a lot of refinery maintenance going on. Because of that there are no refinery tonnes available and it’s coming through terminal, which is more expensive. The European barge market is small, so even a small amount of tightness will affect it.”

 

Buyers and sellers had said on Friday that the record high trade had been made due to low availability of the product and resurgent crude values. 

 

On Monday there was uncertainty as to whether the situation would continue into this week.

 

“Crude came off a bit on Friday and again on Monday, so it seems the situation might get better for buyers,” one consumer said.

 

Others players were more cautious in their assessment.

 

“There is not much availability in Germany and northwest Europe or ARA,” one broker said.

 

“They have to take product from terminal which is more expensive.  As long as material has to be sourced from storage it will maintain high values and it looks like it will stay that way for this week at least.”

 

No bids or offers had been heard.

 

($1 = €0.72)

By: Peter Salisbury
+44 20 8652 3214

< previous article(ICIS Chemical Business podcast November 2, 2009)

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