25 October 2013 16:20 [Source: ICIS news]
LONDON (ICIS)--Europe will export a combined volume of at least 95,000 tonnes of naphtha to the US and Japan in late October, shipping sources said on Friday.
Two naphtha shipping fixtures published this week reveal the volumes will be transported from Europe to both countries on vessels due to load in late October.
Naphtha sources maintain the arbitrage window to Asia is only marginally open, and netbacks from the exports are minimal.
However, industry sources added that there were few other options left in the market to get rid of surplus European volumes.
"Small vessels are going to the US as well," a naphtha trader said.
Europe is structurally long on naphtha, and sellers need to export to the US gasoline and Asian petrochemical sectors to keep stocks in balance.
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