Naphtha price in Asia rose to a six-session high of US$935/ton on Monday, tracking gains in Brent crude, while margin was also at a six-session high of US$124.7/ton as stubborn low Indian supplies countered expectations of softer demand, as per Reuters.
With the onset of the gasoline season, the recent maintenance in India will affect its supplies in April. However, traders did not rule out a choppy naphtha market ahead as wild swings in Brent crude are likely to sideline some buyers. Additionally, squeezed petrochemical margins will periodically weigh on naphtha prices and sentiment. Petrochemical demand in China appears to be weaker-than-expected.
The current lacklustre petrochemical demand from China is unlikely to cause Abu Dhabi National Oil Co (ADNOC) to back down from commanding steep premiums for May 2013 to April 2014 naphtha. The Middle Eastern supplier is in Singapore this week to conduct term talks with its Asian buyers. ADNOC will take the cue from Kuwait who had in February inked a one-year contract with buyers at a record premium of US$35/ton to Middle East quotes on a free-on-board (FOB) basis.
26-Mar-13 
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