Demand from European crackers, which use naphtha and LPG as a building block for ethylene and propylene production, should be steady. The firmness is expected to remain at least until summer 2021, particularly as naphtha is pricing at more favorable levels against competing feedstock LPG. In the domestic market, the extent to which refiners will maintain the low run rates seen through much of 2020 will determine naphtha supply support. LPG to remain largely unaffected by pandemicMarket sources expect LPG will likely experience some degree of strength next year, bolstered by both supply and demand perspectives. Butane demand is expected to remain muted for gasoline blending purposes in line with naphtha on lower expected travel.

Source: The North Africa Journal December 22, 2020 16:41 UTC