Asia’s naphtha spread strengthens to a near 9-month peak

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)

By: Felicia Loo

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index