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NWE naphtha cash money premiums fall to fresh April low as market extends

Sep 9th 2020, 9:54 pm
Posted by wesleymcch
The CIF Northwest Europe naphtha cargo physical costs over the balance-month and the front-month swaps fell Tuesday to respectively $2.25/ mt as well as $13.75/ mt, oilfield drilling chemicals their cheapest degree in April, according to Platts information. On April 2, the physical costs over April swap future was examined at $15/mt, while the physical premium over the Might swap future was analyzed at $33/mt, Platts information shows. According to trading sources, cash premiums for open spec naphtha trading in NWE outside the Platts window have actually been complying with the exact same fad, falling to low-single digits Tuesday from highs of $12-15/ mt previously this month as demand thinned.

"Premiums for open spec naphtha are currently flattish ... not even mid-single [digit]," claimed a naphtha investor. "There does not seem to be much need for naphtha in Northwest Europe and while there are still proposals for May distribution, the market is feeling a little bit much heavier," claimed a broker. While the front-month gasoline/naphtha spread-- the costs of the Eurobob fuel swap over the CIF NWE naphtha swap-- widened partially to $102.75/ mt Tuesday from $101.50/ mt Monday, need for gas mixing was apparently limited to extremely details qualities of naphtha.

In the meanwhile, oilfield drilling chemicals most European petrochemical end-users were stated to be covered for April, while May naphtha demand was still dealing with competition from competing cracker feedstocks gas as well as butane. "LPG is still a great feed as a different [to naphtha] as well as some individuals anticipate that the 6- to eight-week long upkeep of SABIC's cracker will minimize the acquisition of naphtha," claimed a trader. Saudi-owned SABIC's cracker at Wilton in northeast England is because of go through maintenance from May into June for a period of around six weeks.

Market participants also stated that the naphtha arbitrage from the Mediterranean to Asia is presently hardly practical while the arbitrage from northern Europe to Asia stays shut, thus limiting export chances for European naphtha.

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