10 April 2008 08:16 [Source: ICIS news]
SINGAPORE (ICIS news)--The inter-month backwardation spread for Asian naphtha has slimmed further and the spread for the second half of May/second half of June was seen at $3/tonne on Thursday on anticipated weak demand from northeast (NE) Asian end-users, industry sources said on Thursday.
The inter-month backwardation spread was around $5/tonne last week, they added.
Adding pressure to the weak demand was the fact that South Korean cracker operators had mostly covered their May requirements and the few who had not, were deferring purchases till prices softened, market sources said.
Liquefied petroleum gas (LPG) was also being used as an alternative feedstock instead of naphtha due to better economics.
Asian naphtha prices for the second half of May contract opened notionally at $933-936/tonne CFR (cost and freight) ?xml:namespace>
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections