12 September 2013 16:26 [Source: ICIS news]
LONDON (ICIS)--A minimum of 180,000 tonnes of European naphtha will be exported to Asia in mid-September, lower than in August, shipping sources said on Thursday.
Three naphtha shipping fixtures published this week reveal the volumes will be transported from the Mediterranean to Japan on vessels loading in mid-September.
According to naphtha sources, the arbitrage window to Asia has been closed for six weeks, with only "regular" volumes being exported out of the region.
The price spread between the regions were at a non-profitable rate of $11/tonne on Thursday, traders said.
A Brazilian naphtha buyer said: "The arb is closed, there is surplus here in this area, and many many cargoes that used to go to the East they are not going [anymore]."
Europe is structurally long on naphtha, and sellers need to export to the US gasoline and Asian petrochemical sectors to keep stocks in balance.
($1 = €0.75)
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