06 June 2013 10:15 [Source: ICIS news]
SINGAPORE (ICIS)--Asia is expected to see a fall in deep-sea naphtha inflows in July, with some of the deliveries meant for June being pushed over to the first half of July because of an increasingly bearish petrochemical market, traders said on Thursday.
Around 800,000 tonnes of arbitrage naphtha have been booked for July arrivals, they added. The inflows will hail from northwest Europe, the Mediterranean, Russia and the US.
For June, 1.1m-1.15m tonnes were expected to arrive in Asia, traders said. However, some of the second-half June volumes will be delivered in the first half of July instead, they added.
“There are some players with cargoes at hand and they are trying to push up [naphtha] prices,” said one trader.
The decrease in arbitrage material was due to firm gasoline blending demand in northwest Europe, where motor gasoline is being shipped to West Africa, traders said.
“The West African gasoline demand is quite strong at the moment,” said another trader.
Meanwhile, the gasoline arbitrage to the US from northwest Europe remained closed early in the week, traders said.
Apart from gasoline blending, naphtha is also used widely as a feedstock for Asian crackers. Naphtha usage in cracking has diminished lately because top spot buyer Formosa Petrochemical Corp (FPCC) is sidelined after the Taiwanese company reduced its cracker operating rates.
Additional reporting by Cuckoo James
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