Naphtha price in Asia rose to a week high of US$853/ton on Monday, while margins snapped five straight sessions of losses by jumping 20% to reach a two-session high of US$58.9/ton on technical correction and firm gasoline demand, as per Reuters. Despite the surge in margins, the current values are still 29% lower than what they were a week ago.
Taiwan’s CPC is seeking 30,000 tons for Sept. 1-15 arrival at Kaohsiung through a tender which will close on Aug. 1. The return of CPC to the market to seek full-range naphtha after an absence of about three months may have also lent some support to prices.
The past few days have seen naphtha margins coming off rapidly although fundamentals did not undergo dramatic changes. Under such circumstances, the margins have to correct themselves at some point.