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| NWE propane hits 3-year low against naphtha on rising imports |
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| News Source：http://www.jinchemical.com/
; SendDate：2012-4-28 11:02:04 |
European propane hit a three-year low against naphtha Wednesday as imports are set to rise while naphtha supplies are tightening, sources said Thursday.
On the European close Wednesday, Platts assessed CIF Northwest Europe propane cargoes at $847.50/mt, a $151.75 discount to CIF NWE naphtha, which reached $999.25/mt. This represented the widest discount since August 18, 2008, when propane was assessed $152.50/mt below naphtha.
However, it is still below the historic low of $197.25/mt from June 24, 2008.
Rising propane volumes are expected to flow into Europe next month, putting downward pressure on outright prices, sources said.
"I do not think it is difficult to find propane to come to Europe," an LPG trader said.
So far, around 130,000 mt of propane is scheduled for delivery into Europe in May from the US Gulf Coast, the Caribbean and West Africa, LPG traders said, adding that volumes could rise.
Meanwhile, the naphtha market is tightening as fixtures to Asia are rising, sources said, causing petrochemical systems to seek more propane.
"We are shifting to LPG as much as possible," a petrochemical source said. "As naphtha cargoes disappear, premiums are on the high side."
The arbitrage from Europe to Asia reopened this week, with around 200,000 mt of naphtha set for loading between late April and early March, sources said |
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