Europe to move 392,000 tonnes of naphtha to Asia in early Nov

01 November 2013 16:34  [Source: ICIS news]

LONDON (ICIS)--Europe will export at least 392,000 tonnes of naphtha to Asia in early November, shipping sources said on Friday.

Six naphtha shipping fixtures published this week reveal the volumes will be transported from Europe to Asia on vessels due to load in late November.

Naphtha sources maintain the arbitrage window to Asia is open and netbacks have improved after weeks of a narrow price spread between the regions.

The European naphtha market is buoyant after suffering from months of weak fundamentals because of the open Asian arbitrage which traders say has prompted high-volume exports to the region and relieved oversupply in Europe.

Naphtha prices rose above $900/tonne CIF (cost, insurance & freight) NWE (northwest Europe) this week on the bullish sentiment and strong ICE Brent crude oil values.

Europe is structurally long on naphtha, and sellers need to export to the US gasoline and Asian petrochemical sectors to keep stocks in balance.

($1 = €0.74)

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By: Cuckoo James
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