11 July 2008 07:29 [Source: ICIS news]
SINGAPORE (ICIS news)--Asian naphtha spreads continue to narrow on weak demand from northeast (NE) Asian end-users and spreads have crunched by $6/tonne, industry sources said on Friday.
In the Asian cost and freight (CFR) Japan market, the backwardation spreads between second half of August and second half of September had crunched by $6/tonne to $5/tonne since the latter half of June.
The spreads between the first half of September and first half of October also narrowed by $3.25/tonne to $4.75/tonne over the same period.
NE Asian end-users were not seeking August cargoes as most had covered their requirements since mid-June.
The influx of about 250,000 tonnes of naphtha supplies from Europe in July was expected to ease the earlier tightness in the market, sources said. An estimated 300,000 tonnes of naphtha is expected from Europe to land in NE Asia over August.
India’s increase in naphtha exports from 750,000-800,000 tonnes per month to 850,000-900,000 tonnes had also eased the tightness.
"The market is still expected to be slightly weaker in August and September due to the drop in naphtha demand from NE Asian end-users due to a spate of turnarounds," a source noted.
Asian naphtha prices were down 3.52% versus losses since end June.To discuss issues facing the chemical industry go to ICIS connect
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