Some petrochemicals producers are turning to cracking LPG amid higher priced naphtha. Spot butane prices in Northwest Europe are being supported by the current strength of naphtha in the region as per Platts. At least one North Sea butane cargo has recently been sold into a petrochemicals outlet. A refiner in the Amsterdam-Rotterdam-Antwerp region also confirmed to be moving some of its surplus production to its petrochemical affiliate rather instead of exporting it.
Delivered prices for cargoes of North Sea butane have recently recovered to US$852.50/mt, after falling by US$180/mt since the beginning of December from just under US$1020/mt. FOB butane prices in Amsterdam-Rotterdam-Antwerp have also recovered to US$827.50/mt, after falling by US$85/mt during the same period from the high US$880s/mt.
In December, CIF NWE naphtha prices spiked, surpassing levels last reached in Q4-2008, to be assessed at US$868/mt on December 23. Naphtha remains over US$850/mt, delaying some new year restocking interest among European petrochemicals companies.
06-Jan-11 
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