Asia naphtha at a two-session low halfway through last week

17-Jan-11

Naphtha prices in Asia were at a two-session low on last Thursday, while cracks were at their lowest level in three months despite healthy demand from North Asia, as per Reuters.South Korea's LG Chem bought 125,000 tons of open-spec grade for H2-February arrival at Yosu and Daesan at premiums of US$4.25/ton and US$4.75/ton C& F Japan spot quotes. These premiums are less than the US$5/ton paid by competitor YNCC a day ago on a C&F basis, reflecting an even softer market flooded with cargoes from India and the West. Idemitsu bought 25,000 tons for H2-February arrival, at $US6/ton premium on C&F basis. Japanese buyers usually pay more versus South Korean buyers because of the higher freight rates incurred. Open Spec front-month H2-February naphtha fell by over eight dollars to US$864/ton. Naphtha cracks fell by over ten dollars to US$126.90/ton.