Petrochemical companies in Northwest Europe are continuing to shun propane as a feedstock, according to industry sources in Platts. Propane can be used as an alternative feedstock to naphtha by a number of petrochem companies, but the delivered price of propane usually has to be below the delivered price of naphtha.
In H1-November, CIF propane prices were below CIF naphtha and propane was being widely used as a petrochem feedstock. But in H2-November, and H1-December, CIF propane prices moved above naphtha, driven by tight supply and demand to cover trader short position. This resulted in propane becoming too expensive to crack causing most petrochems to either stop or considerably reduce their usage of propane.
19-Dec-13 
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