19 July 2013 23:59 [Source: ICIS news]
European values increased on both a free on board (FOB) and free-delivered (FD) basis, however the slower-reacting UK market is yet to post an increase.
Hexane was at $950-980/tonne FOB NWE (northwest Europe) and €885-915/tonne FD NWE on Friday.
Sources said the cost of raw materials, related product heptane and shifting currency rates were all factors in the price increase.
It is understood the market is quiet but balanced, with some sellers experiencing demand in the lead up to August, while others are seeing quieter conditions with participants out of the market on holiday.
One distributor described the market as quiet, and said; “with the sun out people have better things to do”.
Some expect August to be slow with shutdowns and holidays, however demand for hexane from the oil extraction industry will likely increase from August onwards.
Despite European naphtha prices dropping below $900/tonne CIF (cost, insurance and freight) NWE midweek they remain at a three-and-a-half-month high on firm upstream ICE Brent crude oil futures.
($1 = €0.76)
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