Naphtha margins gain in Asia on demand from South Korea

22-Mar-13

Naphtha margins in Asia moved up on Thursday as more spot demand emerged from South Korea and as buyers tried to capitalise on lower crude oil prices and a fall in premiums, as per industry sources in Reuters. Petrochemical maker LG Chem bought two naphtha cargoes while Honam bought one cargo at premiums of about US$22/ton, a US$4/ton fall from H2-April cargo bought by South Korea's Lotte. Petrochemical makers had earlier remained on the sidelines waiting for crude prices to fall further, which will in turn make feedstock naphtha cheaper.