Naphtha prices in Asia have recovered to a 32 month high, while cracks are at their highest in about a month as a positive demand outlook continues to boost sentiment, as per Reuters. Taiwan's Formosa is said to be in private talks with sellers, and could buy H2-May cargoes by next week. South Korea's Samsung Total has bought 25,000 tons of open-spec naphtha for H2-May arrival at premiums above US$10/ton to Japan spot quotes on a cost-and-freight (C&F) basis. Premiums were higher compared with its previous purchase for similar grades at around US$8/ton. "The market is strong for the time being, especially with some crackers coming back from turnaround," said a Singapore-based trader. Western demand is also strong due to the driving season.
Front-month H2-May naphtha rose US$25.50 to US$1066.50/ton, its highest since Aug. 4 2008 at $1070/ton. Naphtha cracks rose by US$8.69 to US$141.83/ton premium