Wave of naphtha to hit Asia from West
Asia no. canada goose factory sale 1 buyer faces slowing industrial growth
By Jessica Donati
LONDON, Dec 8 canada goose coats (Reuters) At least six tankers carrying Canada Goose Jackets naphtha have been booked to sail from Europe and the Mediterranean to Asia to take advantage of an arbitrage opportunity that could be shortlived, traders said on Thursday.
A window for further bookings remained canada goose outlet open on Thursday as the east west spread for naphtha continued to trade near multi month uk canada goose outlet highs, making the shipments still profitable for traders.
Asian naphtha swaps buy canada goose jacket for December have risen to a seven month high of $21.50 a tonne against the market in Europe this week, while January swaps similarly touched a peak of $16 a tonne on Thursday, traders said.
The flow of naphtha set to hit Asian markets in the coming weeks, however, could soon push down prices Canada Goose Coats On Sale and wipe out the opportunity to buy canada goose jacket cheap ship more excess barrels from Europe east.
don believe they need the barrels. Personally, I think this market looks in Canada Goose Online worse condition than two weeks ago, and I think the game in the East will backfire when all the physical barrels turn up, one naphtha trader cautioned.
Asian markets Canada Goose Outlet https://www.jacketstock.com have tightened as outages by refineries in the canada goose uk outlet Gulf and the restarting of Formosa Petrochemical cracking complex in Taiwan have contributed to an increasingly wide naphtha market premium versus the West.
In Europe, slow industrial growth has helped dampen demand for naphtha, canada goose black friday sale which also is struggling to compete against rival feedstock propane amid weak consumption by petrochemical end users.
naphtha keeps having to collapse to clear canadian goose jacket its oversupply, said a cheap Canada Goose naphtha trader.
SNAP The window of opportunity from Canada Goose Parka Europe could snap shut, traders said, as supply canada goose clearance in the region drains into Asia, where industrial demand uk canada goose led by China is already flagging.
China is Asia top petrochemical importer and is facing a slowing export growth rate. November trade data due later this week expected to reveal the weakest growth in two years.
The Chinese canada goose coats on sale export sector a key driver of economic growth is set to suffer more headwinds in the coming months, analysts say, as Europe debt crisis worsens and consumer spending in the United States remains weak.
Meanwhile, naphtha deliveries from the West will soar in December, and more may canada goose uk shop follow as long as the window for arbitrage remains open.
Traders said that two long range tankers have been booked canada goose by Canada Goose online Total to carry naphtha from canada goose clearance sale the Russian port of Traipse to Asia this month.
In addition, traders said Statoil was shipping an 80,000 tonne cargo of naphtha from Norway to Asia and that BP had canada goose uk black friday booked a 55,000 tonne tanker to head East canada goose store from Greece.
Glencore was also said to be taking advantage of the rallying east west spread, shipping naphtha from Moroccan and Italian Canada Goose sale refineries to Asia, while cheap canada goose uk Vito was also expected to ship Libyan naphtha East.
The wave of arrivals in the weeks ahead will trigger a drop in Asian prices as supply suddenly flips from tight to comfortable, a naphtha trader predicted.