Naphtha crack in Asia dips to lowest level in over four years

10-Aug-16

Naphtha crack in Asia has plunged to US$16.03/ton- the lowest level in over 4 years amid swelling supplies, as per Reuters. Spot prices continued to slide down as supplies rise while demand slowed on cracker maintenance in Taiwan and Japan.
India's Bharat Petroleum Corp (BPCL) sold 30,000 tons of naphtha for August 26-28 loading from Mumbai to Vitol at a discount of US$4-5/ton to Middle East quotes on a free-on-board (FOB) basis. The last time BPCL sold at similar discount levels was when it sealed a quarterly term contract for October-December 2014 cargoes.
Hindustan Petroleum Corp Ltd (HPCL) sold 25,000 tons of naphtha for August 22-24 loading from Mumbai at a discount of about US$12.50/ton to Middle East quotes on a FOB basis to Total, once of the widest discounts HPCL has received in more than eight years.