Naphtha crack in Asia edged up to a four-session high of US$170.2/ton on Tuesday as concerns over high freight rates hampering cargoes moving to the East from Europe countered muted spot demand, as per Reuters. Trade and shipping sources said the rates to move a long-range tanker to Japan from Europe were estimated around US$2.3-2.4 mln, up at least US$200,000 tons from about two weeks ago.
"Asia needs the cargoes as the market is structurally short. And the West has to export due to excess," said a trader. The high freight rates could slow down the movements of the long-haul voyages as traders will be more cautious when fixing the deals. But within the spot market, some buyers had opted to buy liquefied petroleum gas (LPG) first before committing to naphtha purchases for H1-September delivery in view of the former's lucrative prices over naphtha.
23-Jul-14 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}