25 October 2013 12:37 [Source: ICIS news]
LONDON (ICIS)--The naphtha arbitrage window from the Mediterranean to Brazil is open and has led to fresh opportunities for European sellers to export volumes to the country, a Brazilian buyer said on Friday.
"The arb from Med to Brazil is good, it is very attractive for us right now," the source said.
Naphtha shipping fixtures published this week reveal 37,000 tonnes of naphtha is due to be shipped from Skikda, Algeria to Brazil in late October.
Europe is structurally long on naphtha, and although sellers mainly export to the Asian petrochemical sector to keep stocks in balance, cargoes are sent to Brazil if an arbitrage opportunity opens up.
Arbitrage is the simultaneous purchase and sale of a commodity in order to profit from a difference in the price.
($1 = €0.72)
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