Naphtha in Asia spiked to a 3-1/2 week high of US$985.50/ton, with margins rising alongside to a 1-1/2 week high of US$126.83 on demand and relatively tight supplies, as per Reuters.
South Korea's Honam has bought three naphtha cargoes for November delivery into Daesan at premiums of US$13-14/ton to Japan quotes on a free-on-board (FOB) basis. The cargoes were likely for H2-November arrival as stated in its tender, although traders said Honam was also keen on buying volumes for H1-November delivery. A day ago, LG Chem bought 50,000 tons for H2-November delivery at US$12-13/ton premium.
Separately, Indian Oil Corp (IOC) has sold 35,000 tons of naphtha for Oct. 25-27 lifting from Dahej port to Glencore at premiums of about US$31/ton to its own price formula on a free-on-board (FOB) basis, reflecting a firm market.