Naphtha crack in Asia stays flat amid robust demand from South Korea

10-Apr-14

Naphtha crack in Asia was flat on Wednesday at US$141.3/ton, with a steady stream of demand seen from South Korea, as per Reuters. SK Energy has bought two to three naphtha cargoes of medium-range vessel size for H2-May delivery at premiums of about US$19-20/ton to Japan quotes on a cost-and-freight (C&F) basis. Samsung Total picked up around 25,000 tons of naphtha for H2-May arrival at Daesan at a premium of less than US$17/ton to Japan quotes on a C&F basis, as per a trader. Another South Korean buyer was heard to have bought a cargo, also for H2-May delivery at about US$15/ton but pegged to a 45-day pricing formula rather than the usual 30 days as in the case of Samsung and SK Energy. Tighter supplies in recent weeks due to heavy maintenance in Asia and Europe, which affected the latter's exports to Asia, have been keeping spot premiums firm. About a month ago, cargoes being delivered to South Korea in April were selling at premiums of less than US$12/ton on a C&F basis pegged to a 30-day pricing formula.