Asian naphtha prices fell to a near two-week low on Tuesday, in line with Brent crude losses, while cracks dropped to a four-session low, but comparatively strong sentiment kept intermonth spreads firm, as per Reuters. Fewer arbitrage cargoes for May arrival is leading to high offers.
Japan's Idemitsu has not awarded a tender for H2-May volumes due to high offers, probably above US$13/ton to Japan quotes on a cost-and-freight (C&F) basis for full-range naphtha. On the first day of the week, Formosa has bought up to 100,000 tons of naphtha for H2-May arrival at premiums of US$6, US$8 and US$10 per ton on a C&F basis, depending on the grades. However, few traders reiterate the market strength is not supported by fundamentals. Open spec naphtha for front-month H1-June fell by over US $26 to US$1039/ton.