17 July 2012 11:10 [Source: ICIS news]
SINGAPORE (ICIS)--Asia’s naphtha crack spread spiked by 9.6% to close at a two-month high of $93.23/tonne (€75.52/tonne) on Tuesday on the back of strong buying activities amid high run rates at regional crackers, market sources said.
At the close of trade on 17 July, the crack spread between first-half September open-spec naphtha contracts and September Brent crude futures jumped $8.13/tonne to $93.23/tonne, according to ICIS.
The first-half September naphtha contracts were at a nine-week high of $869.00-871.00/tonne CFR (cost & freight) Japan on 17 July, up $25.00/tonne from Monday, with the prices now on their fifth consecutive sessions of gains, ICIS data showed.
“[Crack] spread is healthy and this is showing on the premiums fetched on tenders,” a Singapore-based trader said.
India’s Mangalore Refinery and Petrochemicals Ltd (MRPL) sold by tender a 35,000-tonne naphtha cargo for early August loading at a premium of $29.50/tonne to Middle East spot quotes on a free-on-board (FOB) basis, 31% higher than the premiums fetched by its previous sales for end-July loading. The cargo was sold to PetroChina.
“Apart from healthy [crack] spread, product margins are good as well with most regional crackers running at full operating rates,” the trader said.
($1 = €0.81)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections