10 September 2008 17:15 [Source: ICIS news]
LONDON (ICIS news)--Substantial reductions in oil and naphtha prices are a threat to chemicals volumes, ING said on Wednesday.
The bank’s analysis of spot prices and their relation to volume demand - 34 products across three regions - suggests that de-stocking in basic chemicals “is the obvious purchaser response to falling naphtha prices", it said.
Its ‘volume proxy index' for the sector suggested that this would be a feature of the third quarter.
The decline in prices has been widespread, with ?xml:namespace>
Declines were shown for all product groups including the recently more bullish aromatics and intermediates sectors, the bank's analysts said.Bookmark Paul Hodges’ Chemicals and the Economy blog
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