25 September 2012 05:57 [Source: ICIS news]
By Felicia Loo
“The spread values will be maintained,” said a trader, referring to the premiums.
Another South Korean producer, Honam Petrochemical, had paid the same premium last week for a 50,000-tonne naphtha cargo for delivery in the first half of November to Daesan.
A further squeeze in premiums is unlikely, although the overall premiums had shrunk from previous spot naphtha purchases made by South Korean cracker operators during the first half of September, traders said.
On three cargoes totalling 75,000 tonnes for second-half October delivery, Honam Petrochemical paid a premium of $18.00-18.50/tonne to
The premiums on naphtha purchases had fallen last week because of a knee-jerk reaction to an expected surge in supply, traders said.
Europe, which has excess supply, is estimated to ship to
The premiums on spot naphtha purchases are likely to be stable going forward as firm demand from South Korean crackers helps soak up rising supplies from Europe and
Structurally, Asia is short of naphtha supply and needs to import deep-sea volumes from northwest Europe, the Mediterranean and
The naphtha crack spread closed at $120.28/tonne against November Brent crude futures on Monday, up by 4.8% from 21 September and reaching the highest levels in the sixth successive trading session, according to ICIS data.
Asia open-spec naphtha prices closed at $947.50-949.50/tonne CFR
($1 = €0.77)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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