Trader fixes 60,000t of Europe naphtha to Asia

24 April 2008 10:47  [Source: ICIS news]

LONDON (ICIS news)--The Europe-to-Asia naphtha arbitrage window reopened on Thursday with trader Vitol fixing 60,000 tonnes of open spec material for 28 April loading, sources said.

A $35/tonne (€22/tonne) spread between Europe and Asia allowed for marginally more manoeuvrability, although the promptness of the fixture surprised a number of traders in Europe due to recent logisitical issues, they said.

The resurgence of a workable Europe-to-Asia naphtha market has brought relief to European naphtha players, which had described the market as stagnated in recent weeks.

Brokers and traders both said that there was little support from the petrochemical sector, which deemed prices too high and gasoline sector, which is plentifully stocked on both sides of the Atlantic.

Asia naphtha prices was heard around $983.50-986.50/tonne CFR (cost and freight) Japan for first-half June loading. Second-half June values were at $982.50-985.50/tonne CFR Japan.

In Europe values were assessed lower at around $945-948/tonne CIF (cost, insurance and freight) NWE (northwest Europe).

The May crack spread, the differential between the values of crude and naphtha, was -$9.00-8.85/bbl, illustrating that the naphtha market was not keeping up with the massive gains in crude.

($1 = €0.63)

By: Kawai Wong
+44 20 8652 3214

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