Asia naphtha prices nosedive on crude, equity sell-off

05 August 2011 11:55  [Source: ICIS news]

By Felicia Loo

SINGAPORE (ICIS)--Naphtha prices in Asia plummeted on Friday, triggered by a massive global sell-off in equities and commodities, with investors fleeing to safe havens in cash and government bonds, traders said on Friday.

Battered by a slump in global crude futures, the second-half September naphtha contract closed at $905.50-907.50/tonne (€642.91-644.33/tonne) CFR (cost and freight) Japan – the lowest since 29 June 2011, according to ICIS data.

Prices had fallen from $1,012-1,014/tonne CFR Japan on 1 August, the highest this week.  The contract soared after Taiwan’s Formosa Petrochemical Corp (FPCC) declared a force majeure on all petroleum product exports in late Monday.

“The market is spooked by a potential double-dip recession,” said a trader.

September Brent crude on London’s ICE futures exchange was trading at $106.39/bbl, down by 86 cents/bbl from the previous close. Earlier, the North Sea benchmark fell to a session low of $104.30/bbl, down by $2.95/bbl and its lowest level since June 2011. Crude prices have fallen more than $10/bbl since the start of the week.

In open market trading on Friday, a second-half October naphtha cargo changed hands at $905.00/tonne. A second-half October cargo was done at $968.00/tonne on Thursday, ICIS data showed.

($1 = €0.71)

For more on naphtha, visit ICIS chemical intelligence

By: Felicia Loo

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index