10 October 2013 10:59 [Source: ICIS news]
SINGAPORE (ICIS)--Asia’s naphtha prices rebounded at the close of trade on Thursday, rising to near two-week high levels in response to firmer Brent crude futures.
The second-half November naphtha contract rose by $9.00/tonne (€6.66/tonne) from Wednesday to $918.50-920.50/tonne CFR (cost and freight) Japan, as Brent crude futures topped $110.00/bbl on geopolitical issues, traders said.
Naphtha prices were at the highest levels since 23 September when they closed at $927.00-929.00/tonne CFR Japan, ICIS data showed.
Meanwhile, there were four naphtha cash trades in open market session, traders said.
The spread between the second-half November/second-half December contracts was traded at a backwardation of $3/tonne and at $3.25/tonne in backwardation, traders said.
The first-half December contract changed hands at $917.00/tonne and at $918.00/tonne, they said.
The second-half November/second-half December spread widened to a backwardation of $3.25/tonne on Thursday, almost twice the backwardation of $1.75/tonne on Wednesday, ICIS data showed.
The naphtha crack spread strengthened to $94.95/tonne against Brent crude futures from $86.40/tonne a day ago, it stated.
Lessening the supply pressure was news on lower naphtha exports from India for this month and November, traders said.
India’s naphtha exports are seen sliding to 750,000 tonnes in October from 800,000 tonnes in September, while the volumes would be maintained at 750,000 tonnes in November amid refinery turnarounds in the country, both planned and uplanned.
($1 = €0.74)
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