03 July 2012 10:34 [Source: ICIS news]
At the close of trade on 3 July, the crack spread between second-half August open-spec naphtha contracts and August Brent crude futures gained $9.17/tonne to $60.20/tonne, according to ICIS.
The second-half August naphtha contracts firmed by $20.50 to $793.00-795.00/tonne CFR (cost & freight) Japan on 3 July, following seven successive sessions of increase, ICIS data showed.
“Both [naphtha] crack spread and product margins are improving,” a Singapore-based trader said.
“Cracker operators are emerging to buy spot cargoes regularly,” another Singapore-based trader said, adding that spot prices may just exceed $800/tonne CFR Japan mark very soon, given the crude futures movement.
Honam Petrochemical bought four spot cargoes at a premium of $2.00-3.00/tonne to CFR Japan quotes on 2 July, while Titan Chemicals and LG Chem bought one cargo each for first half of August delivery at low single digit premiums to CFR Japan quotes.
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