Asia naphtha prices march to a fresh three-month peak

10 July 2013 11:51  [Source: ICIS news]

SINGAPORE (ICIS)--Asia’s naphtha prices charged higher on Wednesday, scaling to a fresh high since early April, traders said.

The open-spec contract for August delivery closed at $911-913/tonne (€711-712/tonne) CFR (cost & freight) on Wednesday, up by $12.50/tonne from Tuesday.
Prices were at the highest since 2 April this year, when naphtha settled at $919.50-921.50/tonne CFR Japan.

“All crackers are running hard,” said one trader.

Demand is rising from South Korea, Japan and Taiwan, bolstering naphtha prices, traders said.

Prices remained well supported from strong energy values, with the August Brent crude futures at above $108/tonne at the close of Asian trading on Wednesday.

Meanwhile, the naphtha crack spread against Brent strengthened to $100.80/tonne – the highest levels since 24 June, ICIS data showed.

The second-half August/second-half September naphtha spread widened by $1/tonne from Tuesday to $8/tonne in backwardation, it indicated.

At the close of trading on Wednesday,  the first-half September naphtha contract changed hands from oil major Shell to Japanese trading firm ITOCHU at $908/tonne, while the spread between the first-half September/first-half October contracts was done at $7.50/tonne in backwardation from trading company Glencore to ITOCHU, traders said.

($1 = €0.78)

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