Asia's naphtha price were at a 2-½ week high on Tuesday, and cracks rebounded from a 2-½ month low to reach a three-session high despite weak fundamentals, as per Reuters. Demand has been impacted by absence of Formosa from the markets. Asia's top naphtha buyer Formosa is not expected to restart its 700,000 tpa No. 1 cracker before second-half June. The outage caused by a fire started around May 13 has been the key impetus behind the weak market. Fundamentally, nothing has changed other than Formosa's cracker outage.
The price for front-month H2-July climbed by over 7 dollars to US$984/ton, it’s highest since May 13. Naphtha cracks recovered by US$3.90 to US$110.63/ton premium.