Asian naphtha prices recovered, while cracks eased as demand for H2-November cargoes tailed off, as per Reuters. Demand from South Korea for November cargoes is almost over – this is making the markets weaker as sellers still have cargoes.
Formosa, Asia's top naphtha buyer, bought 150,000-200,000 tons of naphtha for Nov. 16-Dec. 5 arrival at a discount of $.25-2/ton to Japan spot quotes on a cost-and-freight (C&F) basis. These were higher than discounts of US$4.50/ton C&F for Sept. 29 for 150,000 tons.
As compared to sentiments seen from Sept. 1 to Oct. 8, current market sentiments have improved sharply for naphtha, after some parcels from Saudi Arabia were moved to the West last week to help ease the high supplies in Asia. News that India’s Reliance may reduce its exports due to a scheduled shutdown of a crude distillation unit (CDU) for maintenance at its 660,000 bpd refinery in for around a month, has also lifted sentiments.
20-Oct-10 
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