Naphtha price in Asia at a four-session high, margins at highest in about 2-1/2 weeks

18-Oct-12

Asian naphtha price stood at a four-session high of US$985.50/ton on Wednesday while margins rose to their highest in about 2-1/2 weeks of US$132.83/ton amid supplies that continue to lag behind demand, as per Reuters. November exports from India are expected to slide 8% to about 800,000 tons vs October and this could temporarily support spot premiums. Additionally, naphtha has been elevated for some time as it finds support by strong gasoline and liquefied petroleum gas (LPG) prices. LPG can partially replace naphtha in some of the Asian naphtha cracker. High LPG prices have been preventing the substitution from taking place, leading to heavy reliance on naphtha feedstock in Asia and in Europe.