04 April 2011 09:25 [Source: ICIS news]
SINGAPORE (ICIS)--Asia is expected to receive about 270,000 tonnes of arbitrage naphtha supplies from northwest Europe and the Mediterranean in May, up from 220,000 tonnes to be shipped this month, traders said on Monday.
“Some of the volumes meant for April will be spilled over to May because of shipping delays. But that has been ironed out,” one trader added.
Naphtha prices in Asia closed at $1,001-1,002/tonne (€700.70-701.40/tonne) CFR (cost & freight) Japan on Friday, versus $1,019-1,027/tonne CIF (cost, insurance & freight) NWE (northwest Europe), according to ICIS data.
However, the deep-sea volumes were lower than the monthly average of 300,000-500,000 tonnes, traders said.
“European refiners require more naphtha for mogas (gasoline) blending. Hence the arbitrage volumes are down,” said one trader.
With firmer naphtha prices in the West, traders said the arbitrage volumes will remain limited.
($1 = €0.70)
For more on naphtha, visit ICIS chemical intelligence
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