Europe naphtha price slips below propane for the first time in 2013

19 November 2013 17:02  [Source: ICIS news]

LONDON (ICIS)--European naphtha prices have fallen below propane values for the first time this year as propane prices continued to surge on tightening supply, industry sources said on Tuesday.

Northwest European naphtha was trading at $920.50/tonne (€681/tonne) CIF NWE at one point during the day, while propane cargoes were selling at $930/tonne CIF NWE.

The price advantage over propane would translate into improved demand for naphtha from petrochemical producers over the course of the next few days, industry sources said.

"Theres been a switch in the economics. People are moving back to naphtha," a naphtha trader said.

A number of European petrochemical producers are able to switch between naphtha and liquefied petroleum gas (LPG).

The northwest European naphtha market had lost more petrochemical buyers to the LPG sector in autumn, as the price spread between the two feedstocks had remained close to three digits for the most part.

The feedstocks are used to produce ethylene, propylene and other widely-used petrochemicals in Europe.

($1 = €0.74)





By: Cuckoo James
+44 (0) 208 652 3214

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