- Bearish sentiment still persistent- Petchems is heard purchasing butane



The European naphtha markets continued to
be dominated by a bearish mood on June 27. Analysts at S&P Commodity Insights stated that demand
from existing and new PDH (propane-dehydrogenation) capacity ramp-ups would
keep LPG from falling sharply. LPG is
still more attractive than naphtha as a feedstock in flexi-feed for crackers,
despite the reduction of cracker rates during this current season. According to sources, the Mediterranean is seeing an
increase in petrochemical purchases due to the relatively cheap and plentiful butane
supply. Butane, they said, was still
competitive in the petrochemical industry against naphtha and propylene despite
low downstream demand. According to
trading sources, the Skikda refinery in Algeria is back after partial repairs. Sources said that the maintenance began in May and affected
the naphtha...