Naphtha prices down, but spreads rise

29-Aug-12

Naphtha in Asia slipped nearly 2% to dip to a four-session low of US$973.50/ton on Tuesday, but intermonth premiums rose for the fifth session to peak to a five-week high on steady demand and tighter supplies. South Korea's YNCC has reduced run rates at its 1.9 mln tpa naphtha cracking complex by 20% after a typhoon disrupted production at its plastics units. The cracker at Yeochun is expected to start operating at full capacity within two to three days. " At least two South Korean buyers are seeking heavy naphtha privately, a day after LG Chem and Samsung Total have bought a total of 100,000 tons of naphtha for H1-October arrival at premiums of US$8-9/ton to Japan quotes on a cost-and-freight (C&F) basis. Indian Oil Corp (IOC) has offered 35,000-40,000 tons of naphtha for Sept. 18-20 loading from Dahej, and is likely to offer more cargo from Kandla.