Naphtha prices plummet in Asia amid falling crude, oversupply

09-Oct-14

Asia’s open-spec naphtha prices plummeted amid falling crude futures and a regional supply glut, as per traders said in ICIS. Prices for H2-November contract plunged by US$25/ton from 7 October to US$780-782/ton CFR (cost & freight) Japan on 8 October. With this, naphtha prices are at their lowest since 2 July 2012, when they closed at US$772.50-774.50/ton CFR Japan. Meanwhile, crude futures continue to show downtrend. Crude prices retreated after the International Monetary Fund (IMF) cut its global economic growth forecast for 2014. Oversupply concerns also heightened after industry data revealed a larger-than-expected build in US crude stocks.