Naphtha in Asia spiked to a three-session high of US$982/ton while margins rose by over 9% to hit a four-month high of US$134.5/ton, as per Reuters. Prices continue on an uptrend amid tighter supplies and concerns over restricted cargoes from the West. Strong European naphtha demand has continued to limit any fresh exports coming to Asia. Red Sea naphtha cargoes could move to the West because of the high prices although no actual cargoes are Westbound yet. Strength in Asian market is caused by most traders expect Formosa returning to the market to buy spot cargoes.
Formosa, Asia's top naphtha buyer, has shut 1.03 mln tpa capacity on Aug. 15 for a 30-day inspection. Formosa is expected to resume buying shortly. Additionally, India is to reduce its September exports to 550,000 tons or the lowest in four months amid healthy demand from South Korea.
31-Aug-12 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}