Traders have made provisional bookings for 250,000 tons of European and Mediterranean naphtha to arrive in Asia in August. This booking comes about two weeks after securing bookings for 150,000 tons, as per Reuters.
The East-West swap premiums (difference between the Asian swaps and Northwest Europe price) rose t o a 2 and a half week high of about US$17.50/ton on Friday as traders kept the door open for Western cargoes to come into Asia. Asian swaps have to be at least US$14.50 higher versus Northwest European values for Western cargoes to flow into Asia. Concerns over supply disruptions in Japan could force premiums to stay high in order to maintain arbitrage trades.