Marginal gains prop naphtha margins in Asia to three-session high of US$139.23/ton

23-Jan-14

Naphtha margin in Asia extended slight gains to touch a three-session high of US$139.23/ton at the start of week, on demand from South Korea. Lotte Chemical is reported to have bought a cargo for H2-February arrival at Yeosu at a premium of about US$9/ton C&F Japan, with traders complaining that the price was below market rate assessed at about US$12/ton, as per Reuters. It was unclear what led to the lower-than-expected premium. “The naphtha crack and premiums were falling recently because they went too high too quickly and there is some technical correction now," said a North Asian trader. India's ONGC sold 35,000 tons of naphtha for February 5-6 loading from Hazira to Vitol at a premium of around US$31/ton to Middle East quotes, free-on-board (FOB). MRPL also sold 35,000 tons, but for February 16-18 loading from New Mangalore to Unipec at premiums around US$35/ton to Middle East quotes on a FOB basis. Vitol had also scooped up 38,000 tons of naphtha for February 14-16 loading from Mumbai from Bharat Petroleum Corp Ltd (BPCL) at premiums of about $30 a tonne to Middle East quotes on a FOB basis.