28 January 2013 09:58 [Source: ICIS news]
SINGAPORE (ICIS)--Asia’s open-spec naphtha intermonth spread widened to $20.50/tonne in backwardation on Monday, hitting the highest level since May last year, ICIS data showed.
No physical trades surfaced at the close of Asian trading on 28 January, traders said.
Asia’s naphtha prices for the first-half March contract softened by 50 cents from 25 January to $987.50-990.50/tonne (€730.80-733.00/tonne) CFR (cost & freight) Japan on 28 January because of lower Brent crude futures, according to ICIS data.
The intermonth spread between the first-half March and first-half April naphtha contracts widened by 50 cents in the same period to $20.50/tonne in backwardation, according to ICIS data.
The backwardation is at its strongest since 15 May 2012 when the spread soared to $28/tonne in backwardation, the data showed.
Meanwhile, the Asian crack spread strengthened to $140.45/tonne against March Brent crude futures on 28 January, from $138.18/tonne on 25 January, it further indicated.
Tightening supply from India and the western markets is supporting the Asian naphtha prices amid firm petrochemicals demand for the feedstock.
($1 = €0.74)
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