Asia's naphtha crack fell for the fourth straight session to a low of US$141.53/ton as buyers gradually replaced it with liquefied petroleum gas (LPG) as prices of the alternative eased, as per Reuters. Asia's top naphtha importer Taiwanese Formosa has bought LPG for June arrival, as per unconfirmed trader reports. In Japan, Idemitsu Kosan has bought a H2-June naphtha cargo at a premium of about US$20/ton to Japan quotes on a cost-and-freight (C&F) basis.
Traders said while Idemitsu needs to import more naphtha following the permanent shutdown of a 120,000 bpd crude unit in Tokuyama, Japan's naphtha imports are expected to be stable around 1.2 mln tons a month. This is because the shutdown of Mitsubishi Chemical naphtha cracker on May 3 would wipe out some of the country's import demand.
Vitol bought the 75,000-tonne naphtha cargo from Reliance Industries this week for June 5-10 loading from Sikka at premiums above US$40/ton to Middle East quotes on a free-on-board (FOB) basis.