Asian naphtha crack was mostly flat at US$136.1/ton at the end of the previous week. However, sentiments buoyed, as value rose nearly 18% from a month ago as cargoes from Europe to the East diminish, as per Reuters.
The stronger fundamentals lifted Indian MRPL's sales premium on a 35,000 ton cargo scheduled for April 20-22 loading from New Mangalore to more than a 10-month high at about US$42.50/ton to Middle East quotes on a free-on-board (FOB) basis. The cargo was sold to Unipec, which had also bought a cargo from MRPL recently for April 7-9 loading. "There are fewer European barrels streaming in. Western exports to Asia remain a key factor," a Singapore-based source said. Naphtha can be reformed into gasoline or used as a gasoline blendstock. Strong gasoline demand in the United States has prompted Europe to inject naphtha into gasoline production rather than to export it to Asia.
Demand for naphtha continued to be healthy, with Samsung Total coming forward to buy more spot naphtha for first-half May delivery after having bought one cargo on Wednesday at an estimated US$14.50/ton to Japan quotes on a cost-and-freight (C&F) basis, traders said. It was unclear whether Samsung Total managed to buy any cargoes on Friday. "They need a total of three cargoes for first-half May delivery, but so far they may only have bought one on Wednesday, because there are limited offers now as most sellers are in talks with Formosa," a North Asian trader said. Taiwan's Formosa, Asia's top naphtha importer, is in talks to buy cargoes for June-to-November delivery to Mailiao. Formosa will officially award its term tender on March 28.
24-Mar-14 
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