10 October 2013 04:27 [Source: ICIS news]
SINGAPORE (ICIS)--Asia is expected to receive a bumper volume of 1m tonnes of deep-sea naphtha from the western markets in November, broadly similar to October levels in spite of autumn refinery maintenance in Europe, traders said on Thursday.
Already 800,000 tonnes of the arbitrage supply has been fixed, and the market is expecting the November volumes to hit 1m tonnes, they said.
The continuous strong arbitrage imports cast downward pressure on the Asian market, traders said.
“The [Asian] market is bearish. Although there are active refinery turnarounds in Europe, the arbitrage supply continues to be heavy,” said one trader.
The deep-sea cargoes hail from northwest Europe, the Mediterranean, Russia and the US.
The Asian market is already reeling from receding demand from the gasoline blending pool at a time of high influx of naphtha imports from the Middle East, traders said.
On Thursday morning, Asia’s open-spec naphtha prices for the second-half November contract stood at $902-905/tonne (€668-670/tonne) CFR (cost and freight) Japan, down by $6.50-7.50/tonne from Wednesday, according to ICIS data.
($1 = €0.74)
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