Spot prices for FOB butane loading at the French Mediterranean port of Lavera have risen above CIF naphtha prices on the back of tight supply and good demand.
During the summer months, excess butane from Lavera refineries is mainly used as an alternative feedstock to naphtha at the LyondellBasell steam cracker at Berre and the Naphtachimie steam cracker at Lavera, with the FOB butane price usually at a discount to the CIF naphtha price.
According to Platts data, the butane/naphtha price ratio was at just over 96% at the beginning of last month, before weakening to 89% by the middle of July but then increasing again to 97.1% by the start of August. Its last published level was 102.2% Monday.
Sources said that this increase in butane prices to above naphtha was due to continuing petrochemical butane usage, some demand for exports from Lavera and fairly tight refinery availability.
"It seems very tight as production is quite low and liftings quite high," said one trader."
