Naphtha margin in Asia rose for a second day to a 7-1/2-month high

01-Nov-13

Supported by strong demand, naphtha margin in Asia rose for a second day to reach a 7-1/2-month high of US$130.78/ton, as per Reuters. Japan's Mitsui Chemicals was heard to have bought a naphtha cargo for H2-December delivery, at two-digit premiums to Japan quotes on a cost-and-freight (C&F) basis, although this could not be confirmed. Malaysia-based Lotte Chemical Titan decided, however, to withdraw a purchase tender for H2-December cargoes due to a lack of offers. This tender came a day after Asia's top naphtha importer Formosa had bought about 75,000 tons of naphtha for H1-December arrival at Mailiao at a premium of US$5-7/ton to Japan quotes on a cost-and-freight (C&F) basis. This reflected a sharp hike in prices as Formosa paid a discount of US$1-3/ton for 100,000 tons of naphtha scheduled for second-half October previously. Kuwait Petroleum Corp (KPC) has sold 80,000 tons of naphtha for November lifting at US$33-34/ton above Middle East quotes on a free-on-board (FOB) basis, the highest premiums the refiner has fetched since end-May.