Asia naphtha contango spreads widen $12/tonne

23 October 2008 09:55  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian open-spec naphtha contango spreads have widened by $12/tonne since early October as the market remains depressed on muted demand from northeast Asian end-users, industry sources said on Wednesday. 

 

The spreads between first half of December and first half of January were pegged at minus $18/tonne in early October, sources said, adding the spreads were now seen at minus $30/tonne.

 

The second half of December/second half of January spreads had also widened from minus $13/tonne to minus $27/tonne over the same period, they added.

 

Widening contango spreads signify the market is getting more bearish.

 

Naphtha demand from northeast Asian cracker operators has been lacklustre in the fourth quarter, as many have had to cut rates amid the reverse in downstream petrochemical markets.

  

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By: Desmond Chia
+65 6780 4359

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