Naphtha cracks in Asia at 10 month low on expectations of higher supplies from the Gulf amid weak demand from Taiwan

10-Jun-11

Asia's naphtha cracks eased to a 10-month low as sentiment dived on expectations of higher supplies out of the Gulf at a time when Taiwan's demand has not been restored, as per Reuters. South Korea's Honam benefited from the weak market, locking in 25,000-50,000 tons of open-spec grade for H1-July arrival at Daesan at a discount of US$3/ton to Japan spot quotes on a cost-and-freight (C&F) basis. South Korea's Hyundai Oilbank sold a parcel this week for H2-July loading to an undisclosed buyer at a premium of US$3/ton to Japan quotes on a free-on-board (FOB) basis. The price for front-month H-2 July open spec naphtha slipped to US$954/ton, while cracks plunged by US$13.80 to US$84.15/ton