London — Prices of hydrocarbon solvents in Europe have risen this week as persistently low Rhine levels pose logistical challenges, according to sources.
Solvent mixed xylene and toluene were both assessed at Eur820/mt ($959.50/mt) FD NWE Tuesday, up Eur30/mt week on week, while solvent naphtha was assessed at Eur900/mt ($1,053/mt) FD NWE, also up Eur30/mt. White spirit rose Eur5/mt week on week to Eur810/mt ($947.50/mt) FD NWE.
Low Rhine water levels -- falling firmly below 80cm on Tuesday -- have been the main talking point among market participants this week as issues and delays due to barge logistics add pressure to already tight inland logistics.
"Low Rhine water levels are once again threatening logistics with higher costs because of low volumes in barge loading," a source said Tuesday. "This has pushed up prices for truck loadings."
Indeed, sources confirmed that barges could not maximize loading capacity due to low the levels on the Rhine, which in turn has led to delays.
"You have to wait [to get a barge]," a second source said, adding that this has affected the cost structure in the distribution sector.
Market participants have turned to other modes of transport, leading to overbooking on rail routes, sources said.
Earlier this month, sources said trucks were booked for one to two months out, with availability only in the event of cancellations.
The increase in hydrocarbon solvents prices this week have also been supported by bullish upstream moves.
Brent crude hovered above $80/b for the first time in four months last week.
