30 June 2008 10:01 [Source: ICIS news]
SINGAPORE (ICIS news)--Asian naphtha inter-month spreads continued widening by another $3/tonne to $13.50/tonne between the first half of August and first-half September as regional supplies remained tight, according to industry sources on Monday.
The spread was seen at $4.00/tonne in early June. Spreads between second-half August and second-half September also widened by another $2.50/tonne to $11.00/tonne from last week. The spread was seen at $3.00/tonne early June.
“This wide backwardation will most likely last till the end of the year,” a source said.
Asian naphtha markets had also been firming due to healthy buying interest from northeast Asia. South Korean and Taiwanese end-users were seen snapping up cargoes for first-half August delivery.
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“This has further boosted market sentiments. Premiums have spiked to such high levels as well as naphtha prices,” a source noted.
Asian naphtha prices opened steady, with first-half August indications pegged at $1,228.50-1,231.50/tonne CFR (cost and freight) Japan, second-half August at $1,220.50-1,223.50/tonne CFR Japan and first-half September at $1,214-1,217/tonne CFR Japan.
Supplies had been tightening in Asia with fewer material coming from
Asian naphtha prices were up 13.68% versus gains of 11.22% in the Brent crude markets since early June.
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