Europe Naphtha Cargoes Headed to Asia in August Rise to Eight

An eighth tanker was scheduled to transport naphtha from Europe to Asia this month, one more than booked last week, according to shipbroker data.

The Four Wind was chartered to haul the gasoline and petrochemical feedstock, taking the total volume of naphtha loading in August for delivery to Asia to about 640,000 metric tons, shipping data compiled by Bloomberg showed. Bookings are provisional and subject to change or cancellation.

The East-West spread, or the premium of European naphtha to Asian prices, dropped to $2.62 a ton on Aug. 24, the smallest difference in four months, signaling lower profit from transporting cargoes. The spread was at $2.76 a ton today, according to data from PVM Oil Associates Ltd. It has averaged $9.38 in August, compared with $15.91 in July.

“Asia’s appetite for European naphtha appears to be satisfied for the time being,” David Wech, a managing director at JBC Energy GmbH, a Vienna-based energy consultant, said in a report dated Aug. 24.

About 700,000 tons of naphtha may load in Europe in August for shipment to Asia, according to the median estimate in a Bloomberg survey of seven shipbrokers and traders this month. That compares with 410,000 tons in July and would be the biggest monthly volume since Bloomberg records began in January 2010, the survey showed.

A vessel traveling from Italy to Japan would take about 37 days to complete the voyage, based on calculations from the e- ships.net website.

The following table lists oil-product tankers reported to ship naphtha in July and August, according to shipbroker data and transmissions captured by IHS Inc. (IHS) on Bloomberg:

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 SHIP NAME           LOADING      PORT               DESTINATION

Galway Spirit       July 18      Mediterranean       Far East
Suvretta            July 20      Europe continent    Japan
Great White         End July     Europe continent    Ulsan
Sea Legend          July 20      Mediterranean       Far East
Cape Texel          July 20      Mediterranean       Japan
Cape Endless        Early Aug    Mediterranean       Japan
NS Asia             Aug. 2       Mediterranean       Japan
Champion Princess   Aug. 4       Antwerp-Rotterdam   Far East
Tofteviken          Aug. 4       Mediterranean       Far East
King Philippos      Aug. 15      Mediterranean       Japan
Fair Seas           Aug. 15      Mediterranean       Japan
Corossol            Mid Aug.     Europe continent    Japan
Four Wind           Aug. 25      Mediterranean       Japan
---------------------------------------------------------------

The following table lists the monthly volume of European naphtha shipments to Asia by loading month, according to ship transmissions captured by IHS Inc. and a Bloomberg News survey of traders and shipbrokers:

--------------------------------------------------------------
2012 MONTH     VOLUME (metric tons)
     August    700,000 (forecast)
     July      410,000
     June      400,000
     May       400,000
     April     350,000
     March     640,000
     February  240,000
     January   250,000

2011 MONTH     VOLUME
     December  650,000
     November  160,000
     October   0
     September 50,000
     August    150,000
     July      75,000
     June      100,000
     May       200,000
     April     300,000
     March     350,000
     February  450,000
     January   550,000

2010 MONTH     VOLUME
     December  500,000
     November  500,000
     October   0
     September 160,000
     August    0
     July      0
     June      300,000
     May       500,000
     April     400,000
     March     0
     February
     & January 500,000 combined
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To contact the reporter on this story: Ann Koh in Singapore at akoh15@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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