Naphtha ended last week in Asia at a 33 month high, cracks recovered to two-session high

02-May-11

Asia's naphtha price was at a fresh 33 month high on Thursday, while cracks recovered to a two-session high to reflect the strong market caused by reduced European exports to Asia, as per Reuters. The bullish market has prompted India's Reliance to issue a rare term tender in hope of locking in high premiums. The refiner offered up to 480,000 tons of naphtha for June to November delivery, or up to 80,000 tons a month during the six-month period. Spot premiums on a cost-and-freight (C&F) and free-on-board (FOB) basis have risen to their highest in over a year. Taiwan's Formosa Petrochemical Corp bought 100,000-150,000 tons for H1-June arrival for an estimated US$11-13/ton above Japan spot quotes on a cost-and-freight (C&F) basis. YNCC bought 50,000-75,000 tons, and is estimated to have paid premiums of US$15.50-$16/ton above Japan spot quotes on a C&F basis for open-spec grade, US$18-19/ton for full-range grade, and slightly above US$20/ton for light grade. Price of front-month H1-June rose by US$18 to US$1106.50/ton, highest since July 22, 2008.