SINGAPORE (ICIS)--Asia’s open-spec naphtha prices tumbled to their lowest levels in more than three months on Thursday, as the markets were undermined by ample supply and receding demand, traders said.
The second-half March naphtha contract fell by $8.50/tonne from 12 February to $924.00-926.00/tonne CFR (cost & freight) Japan, at the close of trade on Thursday.
The prices were the lowest recorded since 8 November 2013, when the front-month contract closed at $919.50-921.50/tonne CFR Japan.
In the cash market, a first-half April cargo changed hands from Japanese trading firm Marubeni to trading firm Glencore at $921.50/tonne CFR Japan, the traders said.
The time spread between the second-half March/second-half April contracts narrowed 50 cents/tonne to $6.00/tonne in backwardation, keeping to a downward trend since early February, ICIS data showed.
The backwardation is now at its weakest since 18 October 2013, when the prompt time spread stood at $5.25/tonne in backwardation, it indicated.