Supported by Brent crude, naphtha prices in Asia edged up nearly 2% to approach a three-month high on Wednesday. Physical intermonth timespreads remained stable with buyers coming forward seeking February cargoes, as per Reuters.
Number one Asian naphtha buyer Formosa has bought around 100,000 tons of naphtha for mid-February arrival at premiums of about US$3/ton to Japan spot quotes on a cost-and-freight (C&F) basis, similar to premium paid for 200,000 tons for January arrival. Malaysia’s Titan has paid same amount of premium for 25,000 tons of full-range naphtha for February arrival, ahile South Korea's Samsung Total and rare spot buyer KPIC were unable to buy cargoes for H2-February. Most sellers seemed keen to sell to Formosa. As a result, limited volumes were left for other North Asian buyers.
The price for front-month H2 February rose by US$17 to US$938/ton. Naphtha cracks for H2-February fell to US$95.90/ton.