Asia naphtha crack spread fell 13.2% on market uncertainties

24 July 2012 10:53  [Source: ICIS news]

SINGAPORE (ICIS)--Asia naphtha crack spread fell by 13.2%, or $10.98/bbl, as a result of market uncertainties relating to the downstream petrochemical demand, putting naphtha spot purchases on hold, traders said on Tuesday.

On Tuesday’s close, Asia naphtha crack spread against September Brent was at $72.07/bbl, ICIS data showed.

Crack spread had been on a rise for five consecutive weeks before hitting a 10-week high of $93.43/bbl on 18 July, according to ICIS.

“Crack spread starts to decrease, along with the lower energy and naphtha values,” a Singapore-based trader said.

Open-spec naphtha prices for first half of September contracts were assessed at $849.50-851.50/tonne (€696.59-698.23/tonne) CFR (cost and freight), on the end of Tuesday’s trade, down $5.50/tonne from Monday and $41.50/tonne lower from last Friday’s [20 July]  level to $890.50-892.50/tonne CFR Japan, according to ICIS.

“The physical demand was strong last week, but we don’t see much buying and selling this week. Everyone is holding up,” another trader based in Singapore said.

A South Korean trader said: “The fall in crude futures yesterday [Monday] and the negative news about eurozone has put most buying on hold.”

($1 = €0.82)

By: Ong Sheau Ling
+65 6780 4359

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