Asia’s Feb deep-sea naphtha inflows rise to 600,000 tonnes - trade

18 January 2011 07:28  [Source: ICIS news]

SINGAPORE (ICIS)--Another 100,000 tonnes of European naphtha was fixed to move to Asia in February, taking the total arbitrage Asia-bound flows for next month to 600,000 tonnes as Western petrochemical makers switched to cheaper liquefied petroleum gas (LPG), traders said on Tuesday.

“The arbitrage volume is huge,” said one trader in South Korea.

Refiners in Europe were compelled to move bigger-than-expected naphtha volumes to Asia due to of poor gasoline economics there, traders said.

Feeling the brunt, Asia’s naphtha intermonth spread between first-half March and first-half April contracts dipped to $5/tonne (€3.75/tonne) in backwardation from plus $7.75/tonne in early January, according to ICIS data.

($1 = €0.75)

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By: Felicia Loo

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