Naphtha prices in Asia fell on Monday at a four-session low of US$974/ton because of weaker European gasoline values. Naphtha's refining margin was also US$6.58 weaker at US$116.45/ton, as per Reuters. The drop seems to be driven by weaker Western sentiment amid steady demand in Asia.
Buying interest was seen from Asian petrochemical makers- South Korea's LG Chem bought 50,000 tons of naphtha for H2-November delivery to Daesan at a premium of US$14.50/ton to Japan quotes on a cost-and-freight (C&F) basis. Earlier this month, LG Chem bought 25,000 tons for H1 delivery to Yeosu at a premium of US$11-12 to Japan quotes and the remaining for H2 at US$12-13 premium.
The market speculates that Formosa Petrochemical Corp's last Friday's purchase of two-three naphtha cargoes was concluded at premium levels of US$11-12 to Japan quotes on a C&F Mailiao basis.
16-Oct-12 
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