Crude price drop threatens chems volumes - ING

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 Asia leading the way, ING said.

Declines were shown for all product groups including the recently more bullish aromatics and intermediates sectors, the bank's analysts said.

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By: Nigel Davis
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