06 June 2008 06:15 [Source: ICIS news]
SINGAPORE (ICIS news)--Petrochemical prices rose in Asia on Friday, moving in line with firmer US crude oil futures, which rose above the $128/bbl (€81.92/bbl) level in Asian trade to $128.19/bbl (up $0.40/bbl from Thursday) by noon.
US crude futures for July delivery gained $5.49 on Thursday to settle at $127.79/bbl after the US dollar lost ground against the euro and speculators stepped in to acquire length.
The initial rally was capped briefly after the weekly supply statistics from the Energy Information Administration (EIA) revealed a much greater than forecast build in natural gas inventories. However, the rally resumed across the energy complex after the statistics were factored in.
Asian naphtha prices opened higher early Friday on firmer crude markets in the west, industry sources said.
Naphtha opened $35/tonne higher in Asia, with second half July indications pegged at $1,104.50-1,107.50/tonne CFR (cost and freight) Japan, first half August at $1,100.50-1,103.50/tonne and second half August at $1,097.50-1,100.50/tonne.
Benzene prices firmed $5/tonne to $1,275-1,285/tonne in line with crude. Market activities were slow due to a holiday in South Korea, with an offer heard at $1,295/tonne FOB (free on board) Korea against a bid at $1,267-1,270/tonne for July shipment.
Discussions in the toluene market ground to a halt with the public holiday in South Korea. Prices were notionally rolled over from Thursday’s close at $1,190-1,200/tonne FOB Korea.
Styrene monomer (SM) prices were lifted by buoyant crude values. Offers for SM were heard at $1,640/tonne FOB Korea for second half June parcels and $1,650/tonne for July cargoes, up $10-20/tonne on the previous day. In east China, prices similarly rebounded to yuan (CNY) 13,500-13,600/tonne ($1,942-1,957/tonne) ex-tank, around CNY25-100/tonne higher than Thursday.Desmond Chia, Mahua Chakravarty, Clive Ong and Ignacio Sotolongo contributed to the story
($1 = €0.64 = CNY6.95)
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