09 January 2014 05:09 [Source: ICIS news]
SINGAPORE (ICIS)--Asia is expected to receive 1.8m-2.1m tonnes of deep-sea naphtha supply from the western regions for delivery between January and the first half of February, traders said on Thursday.
“The gasoline market is very bad in Europe. There is no blending margin at all, so there is very limited naphtha used for gasoline blending,” said a trader, adding the cargoes have to be exported to Asia as a result.
The arbitrage supply typically hails from northwest Europe, the Mediterranean, Russia and the US, traders said.
Wintry weather has caused delays in shipments, they added.
Owing to the surplus, Asia’s open-spec naphtha prices for second-half February weakened to $964.00-967.00/tonne CFR (cost & freight) Japan at midday, from $1,006.75-1,008.75/tonne on CFR (cost and freight) Japan on 30 December, ICIS data showed.
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