Naphtha in Asia recovers on revived end user demand

04-Apr-14

Naphtha crack in Asia recovered to a two-session high of US$136.25/ton midweek, with spot deals on a cost-and-freight (C&F) basis resuming after a three-day absence, as per Reuters. South Korea's Samsung Total bought a naphtha cargo for H2-May arrival at Daesan at a premium of about US$17/ton to Japan quotes on a C&F basis, similar to what it had paid late last week for a H1-May cargo. Malaysia-based Titan has also bought naphtha for H2-May, but for arrival at Pasir Gudang, they added, estimating that Titan may have paid at least US$10/ton to Japan quotes on a C&F basis for cargo. "Buyers need to replenish their second-half May stocks and some may not see the point in waiting as they likely need to buy a few spot cargoes for the same period. Better to move now and buy at least one cargo first," said a trader.