Asia naphtha opens $36/t lower on softer crude

28 May 2008 04:04  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian naphtha prices opened $36/tonne softer as crude markets dropped off record highs to under $129/bbl, according to industry sources Wednesday.

First-half July indications were pegged at $1,101.50-1,104.50/tonne CFR (cost and freight) Japan, second-half July at $1,097.50-1,100.50/tonne CFR Japan and first-half August at $1,093.50-1,096.50/tonne CFR Japan.

Early this week, Asian naphtha broke another record by trading at $1,125/tonne CFR Japan between Itochu and Mitsui Oil Asia Hong Kong for a second half of July contract.

First-half of July closed at $1,138.50-1,139.50/tonne CFR Japan and the second half of July contract at $1,134.50-1,135.50/tonne CFR Japan. First half of August was pegged at $1,132-1,133/tonne CFR Japan.

While profit-taking, a stronger dollar and worries that demand could weaken in the US. and Asia pushed crude oil futures down from their record recent highs, Asian naphtha markets were firming on healthy buying interest from Northeast Asian end-users.

Asian naphtha prices were up 20.95% versus gains of 20.12% in the Brent crude markets since early May. The former have been lagging behind gains in the latter earlier on due to weak market sentiments.

To discuss issues facing the chemicals industry go to ICIS connect

By: Desmond Chia
+65 6780 4359

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