Spot prices for delivered cargoes of North Sea propane have increased on renewed buying from the petrochemicals sector, according to industry sources in Platts. In the early part of this month the spot price of CIF North Sea propane was just above US$780/mt, but since then has increased to reach a last published level Monday of US$822/mt. North Sea propane is used during the winter as a heating fuel in Northwest Europe. But the absence of cold weather this winter resulted in weak demand from the traditional heating sector and propane was then absorbed into the petrochem sector, where it can be used as an alternative feedstock to naphtha providing the CIF propane price is at a significant discount to the CIF naphtha price. Earlier this month, however, propane was judged to be an unattractive feedstock for petrochemicals, with the price spread between CIF naphtha and cheaper CIF propane at around US$80/mt. Propane also has a high yield of ethylene, the value of which was relatively low.
19-Feb-14 
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