LPG gains competitive edge over naphtha

摘要

LPG demand in Asia-Pacifc could receive a much-needed lift from the petro- chemical sector in the coming weeks as a recent surge in naphtha prices improves the competitiveness of propane and butane as feedstock for steam crackers. LPG prices have been edging lower since the end of April amid lacklustre spot demand from China, India and Indonesia. Naphtha prices have conversely frmed as a result of strong cracker margins and low refnery runs in the region that have kept supplies tight. The propane Argus Far East Index (AFEI) was assessed at a $47/t discount to naphtha prices on a delivered Japan basis on 11 June, while AFEI butane was at a $61/t discount — reversing premiums to naphtha in April and May.