UpdateAsia naphtha spikes above $1,000/tonne on supply crunch

04 September 2012 11:01  [Source: ICIS news]

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SINGAPORE (ICIS)--Asian naphtha prices spiked to more than $1,000/tonne (€790/tonne) on Tuesday on the back of a regional supply crunch, traders said.

The second-half October contract for open-spec naphtha rose by $14.50/tonne from Monday to $1,010-1,012/tonne CFR (cost and freight) Japan, according to ICIS data.

The levels were the highest since 30 April, when the prices stood at $1,020/tonne CFR Japan, the data showed.

In open market trading on Tuesday, Glencore sold an open-spec naphtha cargo for second-half October delivery to Marubeni at $1,011/tonne CFR Japan, traders said.

“Supply is tight,” a trader said.

Demand, on the other hand, remains healthy, traders said.

Stronger crude futures also helped shore up prices, while the naphtha crack spread versus October crude futures widened to $140.10/tonne – the highest since 24 April, according to the data.

At 17:37 Singapore time (09:37 GMT), Brent crude was up 51 cents at $116.29/bbl, while US crude gained 71 cents at $97.18/bbl.

The intermonth spread between the second-half October contract and the second-half November contract widened to a backwardation of $14.00/tonne, from a backwardation of $11.00/tonne on Monday, ICIS data showed.

($1 = €0.79)

By: Felicia Loo

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