Amid buying activity in South Korea, naphtha crack in Asia rebounded from a three week low to US$87.3/ton. But the value was 17% lower compared to a week ago as demand this week was slower while supplies were abundant, traders said in Reuters.
South Korea's LG Chem has bought H1-August naphtha, a day after Lotte Chem's purchase. Premium levels were not immediately known but traders said the petrochemical makers likely had paid a premium of at least 50 cents/ton to Japan quotes on a cost-and-freight (C&F) basis. "Supplies are ample at the moment but once the key crackers return from maintenance, the situation for sellers should improve," said a trader based in North Asia.
Formosa, Asia's top naphtha importer, has shut a 700,000 tpa cracker on June 9 for a 45 day maintenance. It has two other crackers with a total capacity of 2.23 mln tpa that have not scheduled maintenance this year. Supplies from Egypt to Asia were also seen higher, with EGPC having sold up to 112,000 tons of naphtha for July lifting from Suez. Egypt had initially offered two cargoes totalling 70,000 tons but amended that to include a third cargo. Premiums fetched for the cargoes range from US$16 to 21 a ton premium to Middle East quotes on a free-on-board (FOB) basis. Buyers of the cargoes were not known. EGPC had previously sold two April cargoes to Unipec.
22-Jun-15 
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