Asia’s naphtha prices tumble on sharp overnight crude losses

20 September 2012 05:00  [Source: ICIS news]

SINGAPORE (ICIS)--Asia’s open-spec naphtha prices fell sharply on Thursday morning, tracking heavy overnight losses in global crude futures, traders said.

The first-half November naphtha contract declined by $37.50-38.50/tonne (€28.88-29.65/tonne) from Wednesday to $917.50-920.50/tonne CFR (cost & freight) Japan, according to ICIS data.

The November Brent crude futures settled at $108.19/bbl on Wednesday, down by $3.84/bbl.

Asian naphtha supplies are rising while margins are squeezed on the back of weak downstream demand, traders said.

Some of the latest naphtha tenders and spot trades were concluded at lower premiums as a result, they added.

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.

($1 = €0.77)

By: Felicia Loo

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