Spot prices for delivered cargoes of North Sea butane have started to
strengthen on the back of increased demand, according to industry sources.
During the summer period North Sea butane is used as a petrochemical
feedstock substitute for naphtha and also a feedstock for the production of
alkylate and MTBE, which are components in the manufacture of gasoline.
CIF prices for North Sea cargoes of mixed butane are usually at a
discount to the CIF naphtha price, but in early July a combination of tight
availability and healthy buying interest pushed spot butane prices up to
parity with naphtha, based on Platts data.
Butane demand, particularly from the petchem sector, then began to weaken
with the CIF naphtha/mixed butane price ratio dipping down to 93.4% at the end
of last week, again based on Platts data.
Trading sources, however, have now reported additional buying interest
for August butane cargoes pushing the naphtha/mixed butane price ratio back up
to a last published level of 95.4%.
"I can see quite a lot of demand," said one trader.
Petchems have also started to show increased enthusiasm for cargoes of
normal butane to use as feedstock with workable CIF price levels currently
reported to be at around 96-97% of naphtha.
strengthen on the back of increased demand, according to industry sources.
During the summer period North Sea butane is used as a petrochemical
feedstock substitute for naphtha and also a feedstock for the production of
alkylate and MTBE, which are components in the manufacture of gasoline.
CIF prices for North Sea cargoes of mixed butane are usually at a
discount to the CIF naphtha price, but in early July a combination of tight
availability and healthy buying interest pushed spot butane prices up to
parity with naphtha, based on Platts data.
Butane demand, particularly from the petchem sector, then began to weaken
with the CIF naphtha/mixed butane price ratio dipping down to 93.4% at the end
of last week, again based on Platts data.
Trading sources, however, have now reported additional buying interest
for August butane cargoes pushing the naphtha/mixed butane price ratio back up
to a last published level of 95.4%.
"I can see quite a lot of demand," said one trader.
Petchems have also started to show increased enthusiasm for cargoes of
normal butane to use as feedstock with workable CIF price levels currently
reported to be at around 96-97% of naphtha.
