Naphtha margins in Asia at month highs, margins under pressure from rising Brent

05-Jul-12

Naphtha prices in Asia were at a month high on Wednesday, but margins, after surging 18% to a month high the previous day, came under pressure from this week's rise in Brent crude prices as per Reuters. Front-month, H2-August open-spec naphtha price stood at US$799/ton, while while margins fell nearly 10% toUS$54.48/ton. Higher price of feedstock naphtha could be a source of concern for petrochemical makers as demand for petrochemicals including plastics has been slow due to the European debt crisis. Petrochemical margins would soon be squeezed again as Brent crude went above US$100 a barrel after hovering below that level for about two weeks.