Asia naphtha backwardation falls to lowest in more than 3 months

10 February 2014 09:48  [Source: ICIS news]

SINGAPORE (ICIS)--Asia’s open-spec naphtha backwardation has tumbled to the lowest in more than three months at $7.50/tonne on Monday, triggered by weakening downstream petrochemical prices as heavy cracker turnaround sets in, traders said.

The intermonth spread between the second-half March and second-half April contracts narrowed from a backwardation of $9.50/tonne on 7 February.

At $7.50/tonne, the naphtha backwardation declined to the lowest levels since 23 October 2013, when the time spread stood at $7.25/tonne in backwardation, ICIS data showed.
The intermonth spread between the second-half March and second-half April contracts narrowed from a backwardation of $9.50/tonne on 7 February.

The second-half March naphtha contract closed at $939.75-941.75/tonne CFR (cost and freight) Japan on Monday, down by $11.25-12.25/tonne from crude-driven gains at midday, it indicated.

Downstream, ethylene prices in northeast (NE) Asia declined by $10/tonne at the low end of the range in the week ended 7 February to $1,470-1,500/tonne CFR NE Asia, compared with $1,520-1,560/tonne CFR Japan four weeks ago, according to ICIS.

In southeast Asia, ethylene prices fell by $20/tonne at the upper end of the range to $1,400-1,420/tonne over the same period, versus $1,440-1490/tonne CFR SE Asia four weeks ago, the data showed.


By: Felicia Loo



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