Naphtha crack near three-month highs

15-Apr-14

Asia's naphtha crack hovered near a three-month high of US$150.5/ton on Monday as buyers were expected to rely mostly on naphtha as an alternative feedstock amid firm liquefied petroleum gas (LPG) prices, as per Reuters. As per traders, Formosa Petrochemical Corp had reduced its LPG imports after freight rates more than doubled for May shipment to over US$110/ton compared with February rates. Formosa was seeking naphtha for H2-May arrival at Mailiao, and is speculated to have bought at least 100,000 tons at premiums above US$10/ton to Japan quotes on a cost-and-freight (C&F) basis. But this could not be confirmed. India's BPCL sold a total of 114,000 tons of naphtha reportedly to Idemitsu in a three-month contract starting July, at a premium of US$1.50/ton to its own price formula on a free-on-board (FOB) basis.