Bear markets deepen Asian naphtha discounts

12 September 2008 07:43  [Source: ICIS news]

SINGAPORE (ICIS news)-- Asian naphtha discounts had deepened $3.00/tonne to $15.00/tonne on a CFR (cost and freight) Korea basis on persistent bearish market sentiments, trading sources said on Friday.


This week, a Korean end-user reportedly received a discount of $15.00/tonne CFR Korea for a 25,000 tonne open spec naphtha cargo for delivery over second half of October.


The same end-user received a $12.00/tonne discount in end-August for a first half October cargo.


Meanwhile, buy-sell indications for second half October open spec naphtha were pegged at $880.00-883.00/tonne CFR (cost and freight) Japan.


Demand from northeast Asian crackers for naphtha has been sluggish and cutbacks in operating rates by as much as 20% have been common, industry sources said.


Northeast Asian end-users had been severely affected by eroded margins from the downstream petrochemical such as aromatics and olefins, the sources added.


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By: Desmond Chia
+65 6780 4359

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