The Asian naphtha market softened on Tuesday, partly due to lower demand as a result of cracker maintenance and plentiful arbitrage supply from Europe, as per Reuters. Three crackers in Japan and one in Thailand are scheduled to shut in February and March for maintenance while European arbitrage supply to Asia in February remained at above the monthly average seen in 2013. Asia's naphtha crack fell to the lowest in a week while the prompt spread between prices for first-half March and first-half April narrowed for a second straight session although it remained in a wide backwardation at US$12/ton. Spot premiums also eased slightly as South Korean petrochemical producer Lotte bought 50,000 tons of naphtha for H1-March loading at US$11-12/ton above Japan quotes on a cost-and-freight (C&F) basis, edging down from a premium of US$12 last week.
Idemitsu also bought naphtha, likely a 25,000 ton cargo, at a premium of US$17-19/ton above Japan quotes on a cost-and-freight (C&F) basis, steady from early January. The deals could not be independently verified. Demand from the Philippines will rise from March as a new steam cracker will commence operation.
30-Jan-14 
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