Asia's naphtha price hit a 33 month high on Tuesday, while cracks settled at their highest in 3-1/2 months on intensifying concerns over tight supplies, as per Reuters. The Asian markets have received fewer cargoes due to reduced Western exports to the East, and ongoing refinery maintenance in the Gulf.
Offers being quoted above US$15/ton to Japan spot quotes on a cost-and-freight basis. This could have resulted in failure by South Korea's Honam Petrochemical to secure H1-June cargoes. Markets are expected to be stronger this week as the Japanese would prefer to cover need based purchases before they break for holidays next week. Taiwan is also seeking June cargoes- CPC is seeking 35,000-55,000 tons of full-range naphtha in a tender, closing on Wednesday. Additionally, demand from South Korea's LG Chem is expected to increase on completion of maintenance and expansion works at its Daesan cracker, after a 40 day shutdown. Annual capacity at the cracker was raised by 100,000 tons to 900,000 tpa resulting in an requirement of an additional medium-range cargo to feed the unit. Price for front-month H1-June rose by over five dollars to US$1092/ton, while cracks rose to US$163.2/ton premium, highest since Jan. 10
27-Apr-11 
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