Naphtha price in Asia rises on stronger Brent crude

13-Dec-12

Naphtha price in Asia inched up by less than 0.5% to a two-session high of US$943/ton on Wednesday, due to stronger Brent crude, while the intermonth premium stayed at US$14/ton for the third straight session, unchanged from three months ago, as per Reuters. Intermonth premium refers to the difference between prices for H2-January and H2-February. The market has remained supported by demand and seemingly limited supplies coming to Asia in H2-January from Europe and the Mediterranean. These have led to firm offers given to South Korea's YNCC who bought three naphtha cargoes totalling 75,000 tons for H2-January arrival at Yeosu port at about US$16/ton above Japan quotes on a cost-and-freight (C&F) basis, reflecting a spike of nearly 50% in premiums compared to its end-November purchase. More demand was expected as some buyers have not completed their purchases for H2-January cargoes. A North Asian trader estimated that South Korea may need at least another eight spot cargoes of different grades.