Naphtha margins in Asia recover

06-Sep-13

Asian naphtha margins recovered on Thursday to reach a two-session high each at US$103.7/ton after losses in the previous session. South Korea's LG Chem came forward to buy at least a total of 50,000 tons of naphtha for delivery to Yeosu and Daesan in H2-October at premiums of US$1-1.50/ton. This was double the premium YNCC had paid for 75,000 tons on Wednesday for H2-October delivery to Yeosu. Traders were divided as to when the supply glut - which had forced prices in South Korea to flip to the negative zone on Sept. 2 before reverting back to premiums on Sept. 4 - would ease.