Asia naphtha stays strong at $1,000/tonne

29 April 2008 04:51  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian naphtha was still going strong near the $1,000/tonne mark, after a string of record high prices due to simmering crude values last week, market sources said on Tuesday.

Prices were pegged at a CFR (cost and freight) Japan basis.

The second half of June contract traded late Monday at a fresh high of $995/tonne as Itochu sold to Mitsui Oil. The contract traded last week at record high of $982/tonne as Vitol sold a parcel to oil major Shell.

Naphtha contracts had hit successive highs throughout last week at $968/tonne on 22 April and at $966.50/tonne on 21 April, given a firm boost by record high crude oil prices, market sources said.

The gains in the naphtha markets were catching up with crude oil gains due to strong buying support from northeast Asian end-users and prices jumped 7.82% against a 7.80% rise in the Brent crude.

Despite the relatively high prices, northeast Asian end-users continued snapping up cargoes for second half of June delivery this week. Last week, Korean and Taiwanese end-users bought over 275,000 tonnes naphtha for delivery in the second half of June.

Meanwhile, crude was continuing its rally as a strike closed a major British pipeline and on concerns of new violence in Nigeria.

By: Desmond Chia
+65 6780 4359

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