Asia’s naphtha crack spread falls on weak petrochemical demand

17 September 2012 05:18  [Source: ICIS news]

SINGAPORE (ICIS)--Asia’s naphtha crack spread has fallen to a three-week low, because of rising concerns over the weak petrochemical demand, traders said on Monday.

The naphtha crack spread closed at a three-week low of $122.98/tonne (€93.46/tonne) against Brent crude futures on Friday, according to ICIS data.

The crack spread lost 3.8% from $127.80/tonne on Thursday, the data showed.

On Monday morning, the open-spec prices for the first-half November contract fell by $10.50-11.50/tonne to $991.50-994.50/tonne CFR (cost & freight) Japan, the data showed.

Northeast Asian ethylene margins dropped by $5/tonne from the previous week to $22/tonne in the week ended 14 September, reflecting lower ethylene prices and higher feedstock prices, according to ICIS margin report.

Ethylene prices fell by $15/tonne to the previous week’s price of $1,325/tonne, while feedstock costs increased slightly, by 0.3%, the report showed.

In a sign of weakening demand, some of the latest naphtha tenders and spot trades were concluded at lower premiums, traders said.

($1 = €0.76)

By: Felicia Loo

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