Oversupply to persist in N Sea propane market despite sales to petrochemicals

The North Sea propane market is considered oversupplied despite sales into the petrochemicals sector, as per Platts. North Sea propane is historically used as a heating fuel during the winter period, but this winter the lack of a sustained period of cold weather has reduced requirements for the heating sector and left some unplaced cargoes over the end January-early February period. Propane can also be used as an alternative feedstock to naphtha providing the delivered propane price is at a significant discount to the delivered price of naphtha. As per sources BASF, Dow and Sabic have recently bought 20,000 mt CIF propane cargoes to be used as feedstock. Based on Platts data the physical CIF naphtha was at a premium to CIF propane spread of about $60/mt at the beginning of this month, but last week this widened out to reach just over $100/mt and at this level petrochemical producers could justify buying propane.
  More News  Post Your Comment

Previous News

Next News

{{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