Asia's naphtha price rebounded from a five-month low to settle at a two-session high; while cracks stayed sharply below this year's average due to ample supplies, as per Reuters.
South Korea's LG Chem was the first to issue a tender to buy H1-August cargoes, locking in 50,000-75,000 tons of open-spec grade at a discount of US$2.50-3/ton to Japan spot quotes on a cost-and-freight (C&F) basis, similar to levels it had paid on June 22 for 50,000 tons for H2-July arrival. Sellers are dealing with ample supplies. Other than heavy naphtha (usually used for aromatics), demand for other naphtha grades is not that good. The price for open spec naphtha, front-month H1-August, recovered by US$20 to US$878/ton.