South Korean buyers conclude Feb purchases, naphtha price in Asia at a three-session low

12-Jan-12

Naphtha price in Asia was at a three-session low on Wednesday despite gains in Brent Crude. Naphtha cracks fell from a 3-1/2 month high to a three-session low as South Korean buyers slowly conclude February purchases, as per Reuters. However, despite the softer sentiment, fundamentals remained supported on stronger demand from Taiwan. A lack of fresh Western exports to Asia due to high freight rates will also keep supplies limited. Ship delays, attributed to rough weather and port congestions, are also a factor behind the higher freight rates. The price for front-month H2 February dipped to US$971/ton.