Asia is expected to receive at least 1.4 mln tons of naphtha in February, mainly from Europe and the Mediterranean. An additional 800,000 tons have been provisionally booked for arrival mostly in H1-March, as per Reuters. This pegs February volumes at least 17% lower than the record volumes seen for January arrival at 1.7 mln. However, the above-average volume of naphtha inflows is unlikely to dampen a surge in naphtha margin amid robust demand from Brazil and price volatility in the alternative -liquefied petroleum gas (LPG). he alternative feedstock – LPG, being used as heating fuel, has been highly volatile in the past weeks. Though some Asian crackers can replace 5-15% of their naphtha feedstock with LPG, the price volatility is adding to the surge in naphtha. Interestingly, Feb 2014 Western naphtha volumes into Asia will be higher than 2013's monthly average of 1.1 ml tons.
Naphtha margin in Asia (an indicator of demand for the feedstock), was at US$153.15/ton on Jan. 23, about 32% higher than last years average.
27-Jan-14 
