17 September 2013 08:49 [Source: ICIS news]
SINGAPORE (ICIS)--Asia is expected to receive some 600,000 tonnes of deep-sea naphtha inflows from the western markets in October, traders said on Tuesday.
The volumes will be sharply lower than the 1.0m-1.3m tonnes of arbitrage naphtha supply due to be delivered this month, they said.
The cargoes will hail from northwest Europe, the Mediterranean, Russia and the US, traders said.
Availability of arbitrage cargo in Asia will decrease next month because of active refinery maintenance in Europe, they said.
“The [Asian] naphtha market is getting stronger,” said one trader.
Reflecting the increasingly bullish mood, the spread between the first-half November and the first-half December contracts strengthened to a backwardation of $6.50/tonne (€4.88/tonne) at the close of trade on 16 September, from $6/tonne on 13 September, according to ICIS data.
($1 = €0.75)
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