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)
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