Supported by North Asian demand, naphtha crack in Asia gained about 6% to reach a three-session high of US$147.1/ton as per Reuters. Formosa Petrochemical Corp, Asia's top naphtha importer, sought naphtha for June 8 to June 22 arrival at Mailiao in a surprise move. About a week ago, the Taiwanese major had bought at least 120,000 tons of naphtha for June arrival, as per trader information. Since the volume of H1-June naphtha cargoes has been high, it is an indication that Formosa could e in need of cargoes. South Korea's LG Chem bought naphtha for H1-June arrival but price details and volumes were sketchy. But they added that the petrochemical maker needed about 50,000 to 75,000 tons of the light fuel and some estimated that it may have paid a premium of US$19-20/ton to Japan quotes on a cost-and-freight (C&F) basis for the cargoes. This would make it the highest premium LG Chem had paid in about 13 months for spot cargoes bought through tenders.
08-May-14 
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