Thursday, November 15, 2007

S Korean producers consider butane as alternative feedstock to naphtha

As naphtha prices touch record highs, petrochemical producers in South Korea are considering switching to butane as an alternative feedstock. The key open-spec naphtha contract for H2-December quoted at US$822.50/ton this week, while butane is being quoted at around US$755/ton. Asian petrochemical producers usually start to switch to butane when its prices reach 90-95% of naphtha values.

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