Europe naphtha halves in October to hit 3-year low

23 October 2008 11:56  [Source: ICIS news]

LONDON (ICIS news)--Europe naphtha has plummeted by more than 50% in a month to record the lowest levels since June 2005 at $430-440/tonne (€335-343/tonne) on tumbling oil prices and drying-up petrochemical feedstock demand, traders said on Thursday.

The price range, assessed at $428-438/tonne CIF (cost, insurance and freight) NWE (northwest Europe) by global chemical market intelligence service ICIS pricing, was the lowest since $423-431/tonne CIF NWE on 13 June 2005, and half of the $860-870/tonne range assessed on 22 September.

Downward pressure came both from the dramatic plunge in crude oil and the chronic lack of demand for spot naphtha in both the gasoline blending pool and from petrochemical crackers.

This also pushed the naphtha crack spread down to -$17.50/bbl, a level one trader described as "a low I’ve never ever seen".

Added another source: "The current conditions for naphtha are just scary."

($1 = €0.78)

To discuss issues facing the chemical industry go to ICIS connect

 

By: Alex Davis
+44 20 8652 3214

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

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly