14 November 2011 10:20 [Source: ICIS news]
Correction: In the ICIS news story headlined "Asia’s naphtha crack spread at near two-year low on margins slump" dated 14 November 2011, please read in the headline and first paragraph ... three-year low ... instead of ... two-year low .... A corrected story follows.
The crack spread between second-half December open spec naphtha and December Brent crude futures shrank to $28.70/tonne (€20.66/tonne) - the lowest since 8 January 2009, when it stood at $8.40/tonne - from $36.75/tonne last Friday, according to ICIS data.
“It is a bearish market,” said one trader, adding that the sinking margins would prompt further cracker run cuts in
Ethylene margins, based on naphtha feedstock, in northeast
A $10/tonne rise in ethylene prices and a 0.5% increase in co-product credits were unable to offset a 1.5% rise in feedstock costs, after naphtha prices rose by $14/tonne on the back of firm global crude values, ICIS data showed.
On Monday, the second-half December naphtha contract fell by $7/tonne to $886.00-888.00/tonne CFR (cost and freight)
($1 = €0.72)
For more on naphtha, visit ICIS chemical intelligence
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