Europe naphtha offers hit high but buyers unfazed

15 April 2008 17:32  [Source: ICIS news]

LONDON (ICIS news)--Offers for European open spec naphtha cargoes reached a new record high of $904/tonne (€570/tonne) on Tuesday on the back of fresh crude records above $113/bbl and in the face of buyer resistance.

On the open market, the cargoes were offered up to $904/tonne CFR (cost and freight) Rotterdam for 25-29 April delivery.

Other offers were heard at $900/tonne CFR Rotterdam and $902/tonne CFR Rotterdam. One bid was heard at $871/tonne CFR Rotterdam.

The fresh record has put the European naphtha market in turmoil. Traders had said there was diminished buying interest due to such high prices and volatility.

One broker said that the supply and demand fundamentals in the market were distorted as prices were driven by crude oil and not via buying interest in the market.

The broker added that on the open market during the past week, there were virtually no bids in the market only wide offers since market players want to sell but were unwilling to reduce their offers due to the high cost of crude oil.

The naphtha crack spread, which compares the naphtha market relative to the crude oil sector was quoted at -$9.30/bbl to minus -$9.10/bbl for May, reflecting the relative weakness in the naphtha market.

($1 = €0.63)

By: Kawai Wong
+44 20 8652 3214

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.

Printer Friendly