NWE naphtha at multi year lows amid weak demand, weak Asian markets, limited storage

Northwest European naphtha prices have hit fresh multi-year lows under continuing pressure from lack of spot demand, a weakening Asian market, and a darkening outlook as storage options become more limited, trading sources have been reported in Platts. CIF Northwest European naphtha cargoes fell US$21.50/mt at the start of the week to be assessed at US$613.75/mt, the lowest since July 16, 2010, when it was US$613/mt. Meanwhile, the CIF NWE naphtha cargo's physical discount to the front-month swap widened to US$19.50/mt, its widest discount since December 5, 2008. "In Europe, bears control the market and, with refining margins strong, nothing is stopping the slide," a naphtha trader said. "LPG keeps replacing naphtha in the cracking pool," a petrochemical end-user said, adding the European naphtha market has not reached a floor yet as there was no improvement in sight. The main outlet for spot naphtha at the moment in Northwest Europe were storage tanks, with 500,000-720,000 mt of naphtha said to be in tanks, mostly in ARA, but also in the Baltics and the UK. "The only [spot] buying is to put in tanks," a broker said. "I guess it is slowly getting worse because there is more supply than demand for naphtha everywhere." Another naphtha industry source said: "With gasoil cracks up and gasoline unseasonably strong, refining margins encourage refiners to run, which will lead to further naphtha production."
  More News  Post Your Comment
{{comment.Name}} made a post.




There are no comments to display. Be the first one to comment!


Name Required.


Email Id Required.

Email Id Not Valid.


Mobile Required.

Email ID and Mobile Number are kept private and will not be shown publicly.

Message Required.

Click to Change image  Refresh Captcha