Asia's naphtha crack was flat at the start of the week at US$134.70/ton, as more European cargoes were expected to reach Asia in May. However, volumes may still not fully meet overall strong demand in the region, as per Reuters. Traders expected demand from South Korea to stay healthy as crackers are running at high rates.
South Korea's LG Chem has bought at least 50,000 tons of naphtha for H2-May to H1-June arrival at Daesan port with premiums heard around US$16/ton to Japan quotes on a cost-and-freight (C&F) basis. These premium levels were the highest it had paid through open tenders since December. It had previously locked in some naphtha for May delivery through private negotiations, but the prices of those cargoes were not known. Naphtha exports from India for April reached about 450,000 tons, the lowest in more than three years, as Indian Oil Corp. (IOC) passed over naphtha exports for April, vs 100,000 ton exported for March. Reliance had shut a 330,000 barrels per day (bpd) crude distillation unit (CDU) for 3-1/2 weeks of maintenance from March 20. It is unclear if the unit has resumed operations. India's May exports should be higher than April, although it is unlikely it will be sharply higher even though Reliance is expected to return from maintenance.
22-Apr-14 
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