NewsFlashAsia naphtha premiums triple to $11/t

24 June 2008 08:32  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian naphtha premiums tripled over the past week, surging by $7-8/tonne to $11/tonne as supply tightened, industry sources said on Tuesday.

The latest deal was by Lotte Daesan this week at a premium of $11/tonne to Japan quotes CFR (cost and freight) Korea for an open-spec cargo for delivery over the first half of August.

This was a gain of $7-8/tonne over last week’s paid premium of $3-4/tonne for delivery in the same period.

Taiwan’s CPC Corp recently sought to buy 75,000 tonnes of full range naphtha for delivery in the second half of July and also had an ongoing buy tender for a similar volume for delivery in the first half of August.

The spate of buying lent support to the Asian naphtha market, which had been tightening due to a reduced flow of supplies from Europe and India.

An estimated 250,000 tonnes of naphtha was expected to arrive in northeast Asia from Europe in July.

Supplies were however expected to remain tight for the rest of the year on a reduced flow of naphtha from India.

Asian naphtha prices were up 10.26% versus gains of 7.32% in the Brent crude markets since early June.

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By: Desmond Chia
+65 6780 4359

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