Improving sentiments, after demand uncertainties in Japan resulting from Mitsui Chemicals' cracker outage has propped up naphtha prices for the fourth consecutive session, while its crack spreads widened to a second straight four-session high as per Reuters. Despite the improvement, traders said the market remained in a state of fluctuation as players struggled to find market value following two buy tenders from South Korean petrochemical producers for similar cargoes that were concluded at very different price levels.
Despite high crude prices, naphtha cracks are stronger. But the market sentiment does not seem to be as bullish and most players are still waiting for firmer direction. There is lack of activity from the end-users.
Prices for front month H2-April rose for a third session to US$756/MT, up US$4.50. Cracks spread rose US$2.47 to US$153.8/MT premium.