The European truck price of C9 solvent naphtha sank to a four-week low on Tuesday on the back of lower demand from fuel additive buyers, sources said on late Tuesday. C9 distribution prices were assessed at Eur700/mt (about $783/mt) FD NWE, their lowest since the end of April.
Meanwhile, other aromatic solvents such as toluene and mixed xylenes both rose Eur15/mt from last week to Eur675/mt FD NWE and Eur645/mt FD NWE respectively.
C9 streams can be used as an additive for winter grade diesel fuel to prevent it from gelling, by altering its low temperature characteristics.
A distributor working for a European refinery based on the banks of the Rhine said that lower C9 prices this week were partly due to lower gasoline cracks, but primarily lower demand for diesel fuel additive uses. "Winter grade diesel requires more additives," the distributor said.
Gasoline is a feedstock to solvent naphtha production. Gasoline cracks and outright gasoline prices determine C9 extraction costs, as producers face a trade-off between selling the gasoline or processing it further to C9 solvent naphtha.
A second distributor source noted that demand from fuel additives was indeed under pressure. But on a more bullish side, another seasonal trend in the form of increased construction over the summer months could offset lower diesel additive demand: "We see good demand from coatings and paintings," the second source said.
