China’s WEPEC to cancel spot-naphtha exports in Aug, Sept

04 August 2010 11:01  [Source: ICIS news]

SINGAPORE (ICIS)--Dalian West Pacific Petrochemical Co (WEPEC) will not export spot naphtha in August and September amid falling cracker margins, a company source said on Wednesday.

WEPEC also plans to reduce term-naphtha exports in September to 28,000 tonnes, down 50% from the 56,000 tonnes it exported in August, the source added.

“WEPEC did not export any naphtha last month due to the terminal shutdown. As for August and September, there will be no spot [naphtha] shipments, except for term cargoes,” said the source.

As for reduced term-naphtha exports, the source said that current economic conditions did not favour the shipments.

The contango in Asian naphtha between second-half September and October contracts has widened to $3.50/tonne, signalling a bearish market, ICIS data showed.

The port of Dalian, where WEPEC has a refinery, has resumed operations following the clean-up of an oil spill that resulted from a pipeline explosion on 16 July.

WEPEC is a joint venture of state-run PetroChina and Sinochem as well as French oil major Total.

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By: Felicia Loo

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