NWE petrochemical companies buying propane shipments for November delivery as abundant supply keeps propane at discount to delivered naphtha prices
October 24, 2011
– NWE petrochemical companies buying propane shipments for November delivery as steady propane supply keeps propane at discount to delivered naphtha prices
Northwest European petrochemical companies are buying refrigerated propane shipments for November delivery, Platts reported Oct. 21, citing industry sources.
Platts noted that petrochemical companies typically use propane instead of naphtha in summer months because it's less expensive. In 2011, however, abundant supply of field-grade propane into the fall months has sustained a wide naphtha/propane price spread, which was at US$95.25 per tonne Oct. 20. The spread reached $100/tonne earlier in the week, Platts reported. The abundant supply of propane imports in addition to propane supply from the North Sea will help maintain the naphtha/propane price spread into November.
Saudi Basic Industries Corp. reported the purchase of a 33,000-tonne cargo for mid-November delivery from West Africa for its U.K. Tees cracker.
The primary source of this article is Platts, New York, New York, on Oct. 21, 2011.