More refrigerated propane imports flow into NWE on petchem demand
London (Platts)--6May2011/649 am EDT/1049 GMT
More cargoes of refrigerated propane are flowing into Northwest Europe
in thriving petchem sector demand, industry sources said Friday.
The arrival of warm weather has reduced demand in the traditional
heating market, but healthy demand has emerged from the petrochemicals sector
where propane is used as an alternative feedstock to naphtha as long as the
delivered price of propane is at a discount to that of naphtha.
During the latter part of April, sources said that over 100,000 mt of
propane from Algeria and the US Gulf arrived in Northwest Europe with Dow,
Borealis and Sabic all reported to have received refrigerated imports to use
Trading sources said that more imports, totaling about 120,000 mt, were
expected to arrive in Northwest Europe during the first fifteen to 20 days of
May, with suggestions of even more cargoes towards the end of the month.
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LP Gaswire reports on the LPG/NGL industry every business day. It details emerging market trends, pricing, and market news for ethane, iso-butane, natural gasoline, normal butane, and propane in the Japan, Arabian Gulf, Mediterranean, Northwest Europe, and U.S. Gulf Coast markets.
Petchems were again reported to be the main recipient of these imports.
Despite the volume of exports already discharged and expected the
propane/naphtha price ratio has not changed significantly.
Based on Platts data, the price ratio was just over 90% in the middle of
April, increased slightly to 91.8% by the end of the month before reaching a
last published level of 92.1%.
--Derek Hardy, email@example.com