Naphtha prices and cracks rise in Asia, may not last

01-Nov-11

Asia's naphtha price rose to a week high, and cracks have spiked nearly 57% to reach their highest in five sessions although values were still sharply below the January-September average of US$122.30/ton, as per Reuters. Despite the rebound, traders are not convinced that the fundamentals in Asia have improved as demand for petrochemicals continue to be poor. Few buyers prefer to maintain low naphtha inventories as a precaution, and not because of high stock levels. The price for front-month H1-December open spec naphtha climbed to US$876.50/ton, while cracks for H1-December jumped to US$57.50, highest since Oct. 21.