09 August 2012 08:13 [Source: ICIS news]
SINGAPORE (ICIS)--Asia’s naphtha crack spread has rebounded and topped $87/tonne (€70/tonne), stemming three consecutive trading sessions of declines, with most arbitrage material able to be absorbed into the regional market, traders said on Thursday.
The naphtha crack spread for second-half September widened to $87.48/tonne against Brent crude futures on Wednesday’s close, according to ICIS data.
The crack spread was assessed at $86.65/tonne on Tuesday, compared with $96.13/tonne on 1 August, ICIS data showed.
Meanwhile, open-spec naphtha prices closed at $922.50-924.50/tonne CFR Japan on Wednesday, up $9/tonne from Tuesday, the data showed.
Around 500,000-700,000 tonnes of naphtha from northwest Europe and the Mediterranean would arrive in
“A lot of the cargoes have already being absorbed in the market,” said a trader in northeast
Many crackers in northeast
In a sign of firm demand,
The company bought by tender 30,000 tonnes of full-range naphtha for first-half September delivery to Kaohsiung at a premium of $1-3/tonne (€0.81-2.43/tonne) to Japan quotes CFR (cost & freight).
CPC is currently operating its 385,000 tonne/year No 4 naphtha cracker in Linyuan and its 500,000 tonne/year No 5 naphtha cracker in Kaohsiung at 90-100% of capacity. CPC Corp's No 4 cracker restarted on 13 July following an unplanned shutdown in early July.
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