Naphtha cracks in Asia ease, prices plunge to five week lows on increased supply

27-Jan-10

Naphtha prices in Asia Asian plunged to 5 week lows and naphtha cracks have eased in anticipation of increased supplies. Over 200,000 tons of Western naphtha has been put on subjects for February lifting from Europe and the Mediterranean to Asia. Despite the failure of a 55,000 ton parcel slated for early February lifting from the Mediterranean, concerns have eased as at least 100,000 tons of new subjects have replaced it. At least three tenders to sell naphtha have been heard from Saudi Arabia, India and Bangladesh. Buying interest has been lackluster as the market awaits KPC's April-March term talks, scheduled to take place in Singapore next week. Open Spec naphtha for H1-March dipped to US$710/MT CFR Japan, lowest since Dec. 18, while cracks have dipped to US$163/MT