Europe Naphtha drops below $800/tonne on low demand, Brent fall

12 April 2013 18:53  [Source: ICIS news]

LONDON (ICIS)--European naphtha prices have dropped below the $800/tonne (€608/tonne) mark on weak fundamentals and a steep fall in Brent crude, industry sources said on Friday.

Naphtha CIF (cost, insurance & freight) NWE (northwest Europe) prices dropped by $27/tonne day on day to $796-798/tonne on 12 April.

European naphtha prices are under downward pressure from weakening transatlantic gasoline demand, a closed arbitrage to Asia and a spike in supply.

Domestic petrochemical demand is softer on heavy cracker turnarounds.

Meanwhile, additional pressure came from a drop in ICE Brent crude futures.

June Brent dropped from $104.78/bbl at 16:30 GMT on 11 April  to $101.65/bbl on 12 April.

The main application of naphtha is in the petrochemical production of olefins.

Naphtha is also used as a feedstock for gasoline blending.

($1 = €0.76)

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By: Cuckoo James
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