24 June 2013 03:34 [Source: ICIS news]
SINGAPORE (ICIS)--Asia is expected to receive close to a million tonnes of deep-sea naphtha supply from the western markets in July, traders said on Monday.
The volumes – hailing from northwest Europe, the Mediterranean, Russia and the US – comprise 425,000 tonnes of fixed arbitrage shipments and 545,000 tonnes of cargoes booked provisionally, they said.
The shipments may be more than what Asia could absorb at a time of a declining Chinese economy, traders said.
HSBC’s preliminary China manufacturing purchasing managers’ index (PMI) dropped to a nine-month low of 48.3 in June from a final reading of 49.2 in May, because of worsening external demand, slowing domestic demand and destocking pressure.
The drop in China's PMI indicates that manufacturing activity in the world’s second-biggest economy is contracting further. China’s GDP growth in the second quarter will slightly decelerate from the previous quarter, according to Qu Hongbin, HSBC's chief economist. PMI is a gauge of an economy's manufacturing activity, with a reading above 50 indicating an expansion, and a lower number denoting a contraction.
($1 = €0.76)
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