Naphtha margin in Asia almost at 10 month high of US$164.65/ton amid brisk demand and tight supply

20-Dec-13

Naphtha margin in Asia rose for the second session, peaking to a near 10 month high of US$164.65/ton amid brisk demand and tight supply, as per Reuters. News that Reliance has shut, for about a week or two, one of two crude units at its 660,000 bpd plant in Jamnagar due to a power failure, is likely add to supply woes. India has been keeping its exports low due to refinery maintenance. Its average monthly exports for fourth quarter were about 600,000 tons versus a monthly average of 660,000 tons for the first nine months. "Buyers were backing off a bit previously as many Western cargoes were seen moving to Asia but they realised later that there were still not that many offers in the market," said a Singapore-based trader. But demand for naphtha has been strong as crackers in Asia are mostly running at full capacity.