28 June 2012 11:00 [Source: ICIS news]
SINGAPORE (ICIS)--Asia’s naphtha crack spread recovered by 19% to above $50/tonne (€40/tonne) after a marginal fall on 27 June, on the back of improved buying sentiment because of expectations of lower import quantities from Europe and India, traders said on Thursday.
At the close of trade on 28 June, the crack spread between first-half August open-spec naphtha contracts and August Brent crude futures had firmed to $51.23/tonne, ICIS data showed.
The first-half August naphtha contracts rose to $744.50-746.50/tonne CFR (cost & freight) ?xml:namespace>
“With the crack spread widening to physiological mark of more than $50/tonne, sentiment in the market has improved. We can see by the numerous spot buying for first-half August,” a Singapore-based trader said.
Apart from the wider crack spread, the inter-month spread between first-half August and first-half September naphtha contracts has turned to a $0.50/tonne backwardation, after being at parity for two successive sessions.
($1 = €0.80)
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