Boosted by brisk demand, naphtha crack in Asia extended gains at the end of the previous week, rising to almost 8-month high of US$114.40/ton, as per Reuters. Buyers were concerned about the possibility of tighter supplies ahead as rough seas could hamper shipments to the East from the Black Sea, traders said.
Malaysia-based Titan has secured a medium-range vessel size naphtha cargo for H2-December arrival at a low single-digit discount to Japan quotes on a cost-and-freight (C&F) basis. The company had earlier cancelled a tender to buy a cargo, also for H2-December arrival, traders said. South Korea's LG Chem was one of the first few to buy naphtha for H1-January delivery, with some traders estimating the premium levels at more than US$1.50/ton to Japan quotes on a C&F basis.
The deals could not be directly confirmed with Titan and LG Chem as buyers do not comment on their trades. The strength in naphtha was transferred to condensates, used in splitters which produce naphtha among other oil products.
24-Nov-15 
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