15 May 2012 05:18 [Source: ICIS news]
By Quintella Koh
Naphtha was assessed at $927.50-930.50/tonne (€723.45-725.79/tonne) CFR (cost and freight)
Several traders and cracker operators have pointed to dismal consumer data as a harbinger of a weak global economic situation for the rest of 2012, dampening sentiment in the regional naphtha market.
At the recently concluded China Import and Export Fair, also known as Canton Fair, in
Cantor Fair is China’s largest trade fair for overseas buyers that features machinery, electronics, chemical products, consumer goods, gifts, household items, textiles, garments, shoes, office supplies, medical supplies and food items.
Orders placed at the fair provide a clear indication of the global consumer sentiment, which affects the naphtha and petrochemical markets.
“There is no impetus for naphtha prices to increase given the current cautious sentiment. Buyers are holding full inventories and maximising on cracking liquefied petroleum gas. There is no bottom for naphtha,” said a trader.
Asian naphtha prices have declined by more than 9% since the last week of April, when prices were at $1,025-1,026/tonne CFR Japan, according to ICIS.
Increased supply coming from
It received bids from southeast Asian traders at zero to $1.00/tonne premium to CFR (cost and freight)
BPCL last sold a 35,000 tonnes parcel for loading from Mumbai on 23-25 May to Japan’s Marubeni at plus $45/tonne to FOB
($1 = €0.78)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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