Delivered prices for good quality coaster cargoes of mixed butane in
Northwest Europe have remained strong on the back of demand from the
petrochemicals sector, according to industry sources.
During the summer period, when butane requirements for gasoline blending
are low, surplus refinery butane is transported on coaster sized cargoes of
1,000-3,000 mt to be used as an alternative petrochemical feedstock to
naphtha. Dow, Sabic and Total are all regular summer buyers of coaster butane.
The delivered butane/delivered naphtha price ratio has traditionally been
below 90%, but recently this ratio has been at higher levels reflecting
petchems demand for feedstock butane.
Based on Platts data, the butane/naphtha price ratio was below 90% in
early May, but then increased up to 93.6% by the end of last month. In June
the price ratio has consistently been at around 95% with the last published
level at 95.3%.
Some petrochemical companies such as Dow have also been buyers of some
poorer grade coaster butane containing high levels of pentanes or propane, but
workable CIF levels for these cargoes are around 85-90% of naphtha, said
sources.
--Derek Hardy, derek_hardy@platts.com
Northwest Europe have remained strong on the back of demand from the
petrochemicals sector, according to industry sources.
During the summer period, when butane requirements for gasoline blending
are low, surplus refinery butane is transported on coaster sized cargoes of
1,000-3,000 mt to be used as an alternative petrochemical feedstock to
naphtha. Dow, Sabic and Total are all regular summer buyers of coaster butane.
The delivered butane/delivered naphtha price ratio has traditionally been
below 90%, but recently this ratio has been at higher levels reflecting
petchems demand for feedstock butane.
Based on Platts data, the butane/naphtha price ratio was below 90% in
early May, but then increased up to 93.6% by the end of last month. In June
the price ratio has consistently been at around 95% with the last published
level at 95.3%.
Some petrochemical companies such as Dow have also been buyers of some
poorer grade coaster butane containing high levels of pentanes or propane, but
workable CIF levels for these cargoes are around 85-90% of naphtha, said
sources.
--Derek Hardy, derek_hardy@platts.com
