NWE naphtha market weakens on lack of petrochemical restocking

07-Jan-14

The northwest European naphtha cargo market weakened Monday on a lack of petrochemical restocking amid arrival of cargoes in the Amsterdam-Rotterdam-Antwerp region without buyers, as per Platts. Low naphtha demand from the petrochemical industry saw the January/February CIF NWE naphtha cargo swap spread fall to be offered at US$11.50/mt from an assessed US$13.25/mt backwardated Friday. "It is definitely a bit long and demand is not there at the moment," a market source said. Typically, stocks are drawn down over December to reduce possible tax costs, which can often result in a stronger January market on restocking. Petchems last year got caught out, they are now covered till mid-month," a second trading source said. On the supply side, a number of cargoes were struggling to find buyers. Morgan Stanley had a cargo from Algeria sitting off the Amsterdam-Rotterdam-Antwerp region, while Glencore was heard to have a cargo arriving in the region from Riga, market traders said.