European petrochemical producers are using high volumes of spot LPG for steam cracking, driven by seasonal weakness in butane and propane and strength in the market for traditional naphtha feedstock, as per Platts. Falling butane and propane prices -- hit by the simultaneous end of the winter gasoline-blending and heating seasons, respectively -- have improved the gases' competitiveness.
April and May is the transition period between the high demand winter period and the summer steam cracking season, when butane and propane cheapen versus naphtha and become viable alternative feedstocks. Steam cracker flexibility to change feedstock slates varies greatly between units, however, and this can cause a lag between the seasonal weakness and petrochemical buyers stepping in to support the LPG market.
21-Apr-15 
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