Naphtha p rice in Asia has been on the rise, increasing for the fifth session to reach US$893/ton, while margins spiked by almost 19% to US$95.6/ton to a 2-1/2 month high on improved demand, as per Reuters. Petrochemical prices in the region have seen an uptrend, propping up demand, and are likely to spur buyers to seek cargoes to feed their crackers. South Korea's SK Energy has raised run rates at its 200,000 tpa naphtha cracker since Monday after it reduced the rates to about 80% in June. Formosa is also expected to restart its 700,000 tpa No 1 cracker within the next few days following a maintenance that started on June 19.
Most cargoes, even the Western exports to Asia, have likely found buyers for H1-September. The market awaits offers for H2-September and the direction after YNCC completes its term purchases. YNCC is seeking September 2012 to August 2013 naphtha through a tender which will close on Aug. 3. Offers will stay valid until Aug. 7.