Asian naphtha price hit its highest in over two years on Tuesday at US$927/ton. The next day saw prices fall, with cracks easing as weak fundamentals loomed, as per Reuters. The price for front-month H1-April slipped by US$5.50 to US$921.50/ton. Since market fundamentals are basically bearish, a correction in prices was expected. A weak European market would directly weigh on Asia, as this could mean the West will have to find an outlet to absorb its excess cargoes, and the Far East is usually the recipient. However, demand from South Korea and Taiwan helped cushion the fall in cracks. Naphtha markets of Asia have received a much needed boost with buying of 250,000-300,000 tons of naphtha for H1-April arrival by Taiwan's Formosa Petrochemical Corp and South Korea's Honam. CPC could shut its 380,000 tpa No. 4 naphtha cracker around mid-March for 7-10 days for repair if it fails to solve a technical glitch. Its 230,000 tpa No. 3 cracker will undergo an estimated 40-day maintenance starting end March.
24-Feb-11 
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