The naphtha/propane CIF price spread in Northwest Europe has narrowed, based on Platts data.
Refrigerated propane cargoes are used during the summer in Northwest Europe as an alternative petrochemical feedstock to naphtha with the delivered propane price at a discount to the delivered naphtha price.
The spread between the two prices was $87/mt at the beginning of June, then widened out to 94/mt before narrowing to a last published level of $69/mt, based on Platts data.
Sources said that this reduced price spread should make propane a less attractive feedstock, although there have as yet been no public indications of petrochemicals reselling any propane cargoes.
Although spot North Sea propane availability has appeared to be a bit tight in June industry sources reported that propane imports into Northwest Europe this month should reach over 200,000 mt with Dow, BASF and Sabic all said to be taking some of these imports.
