Europe naphtha exports to Asia halve on high freight

07 February 2014 11:51 Source:ICIS News

LONDON (ICIS)--Europe is set to export a minimum of 80,000 tonnes of naphtha to Asia in early February, less than half the volumes fixed last week, shipping sources said on Friday.

One shipping fixture published this week revealed the volumes will be transported from the Mediterranean to Japan on a vessel due to load in early February.

High freight rates were stopping cargoes from moving east despite a wide spread between European and Asian naphtha prices, traders maintain.

A naphtha trader said: "Freight is still too high keeping the arb [arbitrage] just workable from the Med."

Freight rates for Long Range 2 (LR2) tankers were still high at 3.1m US dollars, while traders were forced to pay out 2.6m US dollars for Long Range 1 (LR1) vessels, the source added.

"It has been very quiet," a second naphtha trader said on exports to Asia.

Europe naphtha tonnes to Asia

From northwest Europe

From Mediterranean

From Russia

Week ended 7 February 2014             




Week ended 31 January 2014                   




The volumes are down from last week, when 165,000 tonnes of naphtha were booked from Europe to the east.

Meanwhile, one shipping fixture revealed 30,000 tonnes of naphtha was being shifted from Russia to the Mediterranean, after a gap of two weeks.

Russian imports to Mediterranean/UKC 

Volumes (in tonnes)

Week Ended 07 February 2014


Week Ended 31 January 2014


Week Ended 24 January 2014


By Cuckoo James