Naphtha crack in Asia dips to 4 month low of amid high supplies and lower demand

27-May-15

Naphtha crack in Asia fell to a four-month low of U$74.9/ton at the start of this week, amid high supplies and lower demand, as per Reuters. Western cargoes hitting Asian shores in June were estimated at 1.8 mln tons, unchanged from May, but demand next month would be lower due to cracker maintenance in Taiwan and more than 200,000 tons of alternative liquefied petroleum gas (LPG) expected to replace naphtha. Indian Oil Corp's (IOC) exports for two straight months since May were also higher compared with the monthly average for the first four months of this year. Traders said IOC has sold a 35,000 ton cargo for June 15-17 loading from Chennai, and possibly another 15,000 tons for June 8-10 loading for Haldia, to Unipec.