04 February 2013 09:53 [Source: ICIS news]
(Adds details in paragraphs 5-8)
SINGAPORE (ICIS)--Asia’s opec-spec naphtha prices surged to $1,011-1,013/tonne (€738-739/tonne) CFR (cost & freight) Japan, stoked by tightening supply in the region, traders said on Monday.
The prices of the petrochemical feedstock are at their highest levels since 12 September 2012 when naphtha prices closed at $1,013.50-1,015.50/tonne CFR Japan, ICIS data showed.
Stronger Brent crude futures at the close of Asian trading also fuelled the rise in naphtha prices, traders added.
Separately, in physical trading, the first-half April/second-half April naphtha spread was done at a backwardation of $13.50/tonne, traders added.
Meanwhile strong downstream demand in China helped underpin prices too, they said.
China’s linear low density polyethylene (LLDPE) futures trade rose by 2.3% on 4 February on the back of bullish market sentiment driven by the strong US stock market and crude oil prices on 1 February.
May LLDPE futures, the most actively traded contract on the Dalian Commodity Exchange (DCE), closed at yuan (CNY) 11,360/tonne ($1,823/tonne), up by CNY260/tonne from the previous settlement price of CNY11,100/tonne on 1 Febuary.
Low naphtha supply from India and Europe further shored up prices, traders said.
($1 = €0.73, $1 = CNY6.23)
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