COMMENTARY

Feedstock prices were slightly lower in North America this week as oil prices fell from recent highs. However, tight supplies in Europe kept naphtha prices high. Naphtha shortness in Asia is driving some olefins producers to shift their feedstocks to natural gas liquids. Naphtha supplies in Europe would be even tighter if it were not for several cracker outages in Germany. Most recently BASF’s 600,000-m.t./year unit at Ludwigshaven went down on July 2. The company declared force majeure on ethylene supplies and put customers on about 90% allocation. Ineos...

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