Naphtha crack in Asia drops to near 2-1/2 week low amid expected supply crunch

18-Feb-15

Naphtha crack in Asia for front month H1-April fell by over 9% at the start of the week to a near 2-1/2 week low of US$86.7/ton, as traders expect a supply crunch they attribute to short-term factors to ease, as per Reuters. Strikes in the US and strong demand from Latin America have clogged most of the supplies to Asia, amid delayed Algerian cargo shipments to the East on account of bad weather. These however would have only a short-term impact on the market, traders said, as regular supplies would be restored once the strikes were resolved and weather improves. "As expected, the April market should be weaker than what they were in the last three weeks or so," said a trader.