Naphtha intermonth prices in Asia remained at a discount of US$2/ton for the third session on Thursday as weak demand was expected to last because of the gloomy economic outlook and rising naphtha supplies, as per Reuters. The intermonth prices refer to the differential between front-month H2- July values at US$739/ton and H2-August prices at US$741/ton. The market is seeing very few buyers. Only Honam Petrochemical has come forward with a tender to buy 50,000 tons of naphtha for H2-July arrival at Yeosu at a discount of US$4.50/ton to Japan quotes on a cost-and-freight (C&F) basis. This was the first discount seen in South Korea in about 6-1/2 months.
The unfavourable selling conditions have forced India's Hindustan Mittal Energy Ltd (HMEL)
to cancel its first naphtha export offer of 8,000-10,000 tons for end-June lifting. Europe has started reducing run rates because of weak demand particularly for naphtha and distillates. |
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