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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