London (Platts)--18Mar2011/954 am EDT/1354 GMT

Northwest European Crude C4 values have been rising on the back of tightening supplies, as major turnarounds have an impact on the market, sources said Friday.

Sources have reported the European market tightening over March, with the expectation of a further reduction of supply going into April, following shutdowns at major European cracker operators including Dow Chemicals, Terneuzen cracker and SABIC's Geleen cracker, both in the Netherlands.

This has resulted in the value of Crude C4--which is measured as a factor against naphtha--rising to above 1.30 to naphtha.

One trader said Friday that "the factor would be at least 1.3, if you could buy product. I can see buyers paying up to 1.33."

A producer reported selling Crude C4 at 1.32 and added "1.33 also makes sense to me, although I haven't seen business done there."

With European open-spec naphtha valued around the $970/mt CIF NWE mark at 1230 GMT Friday, a factor of 1.32 would mean an outright value of $1,280/mt for Crude C4.

Looking forward, there is potential for a further rise in the factor, sources said, adding that there is strong demand for April, when turnarounds will be in full swing.

The producer reported seeing "a lot of demand for early April."

"We won't be able to meet it all," he added.

A trader said he believed that the likelihood of rising factors in April would also limit March trade as sellers prefer to hold on to product in a tight market.

"With shutdowns around the corner, it's become a no-go [to sell Crude C4]. Producers are being very conservative with what they sell. Why sell now, when you know you're going to have to replace it with higher priced product?" the trader said.

--David Potter, david_potter@platts.com

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