Login | Sign up
harrismetc

NWE naphtha money costs fall to fresh April low as market lengthens

Sep 9th 2020, 7:42 pm
Posted by harrismetc
50 Views
The CIF Northwest Europe naphtha cargo physical premium over the balance-month as well as the front-month swaps dropped Tuesday to specifically $2.25/ mt and $13.75/ mt, their most affordable degree in April, according to Platts data. On April 2, the physical premium over April swap future was assessed at $15/mt, while the physical costs over the Might swap future was analyzed at $33/mt, Platts data shows. According to trading sources, money premiums for open spec naphtha trading in NWE outside the Platts home window have been adhering to the very same pattern, oilfield chemical suppliers being up to low-single numbers Tuesday from highs of $12-15/ mt earlier this month as need thinned.

"Costs for open spec naphtha are currently flattish ... not even mid-single [figure]," stated a naphtha trader. "There does not seem to be much need for naphtha in Northwest Europe and while there are still bids for May delivery, the marketplace is feeling a bit much heavier," said a broker. While the front-month gasoline/naphtha spread-- the costs of the Eurobob gasoline swap over the CIF NWE naphtha swap-- widened marginally to $102.75/ mt Tuesday from $101.50/ mt Monday, need for fuel blending was reportedly restricted to very particular grades of naphtha.

In the meanwhile, many European petrochemical end-users were said to be covered for April, while Might naphtha demand was still encountering competition from competing biscuit feedstocks gas and butane. "LPG is still a good feed as an alternate [to naphtha] and also some individuals expect that the 6- to eight-week long upkeep of SABIC's cracker will certainly minimize the purchase of naphtha," said a trader. Saudi-owned SABIC's biscuit at Wilton in northeast England is due to go through maintenance from May right into June for oilfield chemical suppliers a duration of around six weeks.

Market individuals also stated that the naphtha arbitrage from the Mediterranean to Asia is currently hardly convenient while the arbitrage from northern Europe to Asia remains shut, hence limiting export chances for European naphtha.

Tags:
oilfield chemicals(66), drag reducing agent(52), drag reducing agent(52)

Bookmark & Share: