| Naphtha price in Asia ended the previous week at a two-session high of US$841.50/ton while naphtha margins slumped by 19% to a month's low as buyers held back purchases in view of squeezed petrochemical margins and higher naphtha supplies, as per Reuters. Margins were at US$49.2/ton premium, their lowest since June 27 at US$42.47/ton premium. Markets have been muted this week on limited buying from South Korean buyers who have adopted a wait and watch stance as there are more naphtha supplies seen in the market. India's August naphtha exports could reach about 750,000 tons – spiking by 29% from July's volumes. High Brent crude were squeezing petrochemical margins as sluggish demand did not allow makers to raise polymer prices. Additionally, restocking of petrochemicals in China has slowed down since last week. Plastics prices have been underperforming when compared to raw material crude/naphtha," said another trader.” If things get worse, petrochemical makers could cut cracker runs. Some are however hoping that there will be some stimulus measures from the European Union, China and the U.S which would drive demand." |
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