Tag Archives | naphtha

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Downturn Alert shows prices keep falling

It is now 4 weeks since the blog launched its IeC Downturn Alert. Since then, as the chart shows (based on ICIS pricing reports): • Brent (blue dotted line) is down 11% • Naphtha (red) is down 13% in Europe • Benzene (green) is down 9% in Europe • HDPE export (purple) is down 7% […]

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Time to check Downturn contingency plans

Two years ago, the blog began to survey global stock markets on what turned out to be the day they began their major rally. Its end-April launch of Downturn Alert may prove similarly fortuitous. Since then (shaded area), Brent crude oil is down 8%. Similarly naphtha is down 11%, benzene down 2%, HDPE 6% and […]

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Electric autos launched in the USA

The blog has been following the development of General Motors’ electric auto, the Volt, since October 2008. Its old friend, Pedro Spohr of Galp in Portugal, had highlighted how a move to electric autos had the potential to change naphtha balances for the chemical industry. So it is delighted to see that the Volt has […]

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Asia’s olefin margins weaken vs Europe, USA

The ICIS weekly margin reports continue to provide essential reading for anyone in the petrochemical value chain. The above chart is particularly fascinating, as it highlights the significant differences between cracker margins on a regional basis over the past 2 years: • Europe (red column) is the clear winner over the period. Its margin bottomed […]

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Benzene develops security of supply issues

As promised, the 3rd of the blog’s series on the changes underway in the pricing of the major ‘building block’ chemicals, looks at benzene. The chart above shows its ‘spread’ versus naphtha, the key dynamic from a price and margin perspective. As can be seen, this was normally in the $80/t – $200/t range until […]

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Major changes underway in relative olefin pricing

Unprecedented changes are taking place in the relative prices of the main ‘building block’ petrochemicals. In turn, these could have major implications for downstream users, all along the key value chains. Today’s post looks at the changes taking place in ethylene’s relative price to the other olefins, propylene and butadiene. On Monday, the blog will […]

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Volt to use ethanol as well as electricity

The blog has been following the development of GM’s new all-electric car, the Chevrolet Volt, with interest, ever since Pedro Spohr of Galp in Portugal highlighted its potential to impact naphtha balances. Of course, it won’t do this on its own – but GM’s adoption of the technology makes it essential for other manufacturers to […]

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European ethylene margins slip as oil prices rise

The excellent ICIS European margin report for ethylene shows an interesting picture this week. The chart above compares contract margins based on naphtha (red line) and LPG (yellow line) feedstock. Both have been slipping since September, when they peaked at €398/t and €357/t respectively. This week, they are over 40% lower, at €232/t and €208/t. […]

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Electric cars could change naphtha balances

Last week, Nissan said its new Leaf model had achieved 367 mpg (156 kpl) in city driving. And this week, GM said its Volt could get an average 100 mpg rating. Pedro Spohr of Galp in Portugal was therefore clearly right last October, when he suggested to the blog that the new range of electric […]

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Refiners’ margins come under pressure

In another sign of the economy ‘bouncing along the bottom’, US drivers appear to have returned to the road in recent months. Latest figures from the US Highway Administration show a 0.1% rise in vehicle miles travelled during May, the second consecutive month of positive growth since 2007. But this is unlikely to provide much […]

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