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Editor Vinicy Chan, vinicy.chan@icis.com
NOTE: For full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.
European hexane prices in both domestic and export markets were pushed up by higher feedstock costs, with demand reported constant and supply abundant.
A week-long strike at Total’s refineries in France had supported gasoline prices, and the higher naphtha prices also fuelled the price rise in hexane, which was mainly used to extract edible oils from seed and vegetable crops such as soybeans, peanuts and corn, or used as solvents for glues or a cleaning agent in the printing industry.
Hexane prices in the domestic market were quoted at €720-760/tonne FD NWE, up €45/tonne on the buy side of the range.
In the export market, hexane prices rose $20/tonne to $920-930/tonne FOB Rotterdam.
The price volatility in feedstock naphtha and crude was likely to dominate the price movement in hexane in the coming weeks, sources said.
Gasoline prices in Europe closely mirrored the relative stability in the crude markets with very little movement throughout the week. Prices ended at €701-719/tonne FOB AR, down from $710-725/tonne on Monday.
Crude Oil prices remained relatively unchanged on the week, with the April NYMEX WTI contract trading at just above $79/bbl on Friday afternoon, while its Brent counterpart was trading at around $77/bbl, compared to $79.38/bbl and $77.58/bbl respectively last week. While positive macroeconomic data and ongoing tensions in the Middle East over Iran’s nuclear program provided support, the Greek crisis continued to put a cap on the upside.
The weekly Europe naphtha spot market range was $696-720/tonne CIF NWE. There was a pick-up in activity for naphtha this week, with deals reported on Monday at $719/tonne CIF NWE and Thursday at $697/tonne CIF NWE. Supply concerns arising from the Total refinery strikes in France pushed the cracking margins up.
($1 = €0.74)
This week on ICIS news ( www.icis.com):
26-02-10 15:18 NYMEX crude gains $1/bbl on US GDP data, firm equities markets
23-02-10 14:28 Refinery strikes shutter over a quarter of France C3 capacity
23-02-10 11:11 Indian Oil sells 30,000-tonne naphtha cargo to Sempra
