Naphtha prices in Asia at a four-week high

Naphtha prices in Asia have peaked to a four-week high as strong fundamentals continue to boost sentiments. Demand for polymers continues to be strong in China and has kept crackers in Asia running at high rates despite additional capacities coming onstream in China. Strong ethylene demand in Southeast Asia has also supported naphtha fundamentals. Naphtha cracks have also recovered after falling to their lowest in about ten days. Polymer demand is expected to be robust for H2-February parcels after the New Year holidays, keeping naphtha demand healthy in the short run.
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