Asian naphtha price hit a near 10-month high of US$1049.75/ton on Friday, while margin rose for the fifth straight session towards an 11-month high of US$165.58/ton as tight supplies persisted, as per Reuters.
South Korean petrochemical makers have mostly completed their March purchases. But the lull will be temporary as buyers are expected to start purchases for April cargoes after the Lunar New Year which begins on Sunday, Feb. 10.
In term talks, Kuwait Petroleum Corp (KPC) seems to be on the verge of striking a deal with some of its Asian buyers after it revised its offer for full-range naphtha lifting April 2013-March 2014 to US$36/ton premium to Middle East quotes on a free-on-board (FOB) basis. This was down from an initial US$41 at the start of the talks which began on Feb. 4. The current offer of a US$36/ton premium is 33% higher than its last contract deal for naphtha lifting December 2012-November 2013 at a record high premium of US$27/ton.