02 May 2013 16:18 [Source: ICIS news]
LONDON (ICIS)--Around 1m tonnes of deep-sea naphtha from Europe is expected to head to Asia in May, for delivery in June, traders said on Thursday.
Most of the naphtha volumes are heading from the Mediterranean to Asia, with far less supply from northwest Europe, sources said.
A favourable “east-west spread” of $28/tonne between northwest Europe to Asia earlier in the week had led to vessels being booked from the region to Asia.
However, one trader said a narrowing of the spread to $25/tonne on Thursday meant a few of the shipments have now been withdrawn.
This is yet to be confirmed by other trading houses.
"I think we will end up sending around 1-1.2m tonnes this month," one said
Another added: “Today a few ships have been dropped. EW [east-west spread] is now $25/tonne at the front. Have to see what other boats get dropped.”
Trading sources estimate around 600,000 tonnes of naphtha monthly volumes move from Europe to Asia on a regular basis.
($1 = €0.76)
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