Naphtha prices in Asia at lowest levels in a month, cracks fall to near two-week lows

27-Jan-11

Naphtha prices in Asia were at their lowest levels in about a month and cracks fell to near two-week lows as strong demand was countered by weak sentiment due to forthcoming cracker maintenance, as per Reuters. Front-month H1-March naphtha fell by 17 dollars to US$862/ton, the lowest since Dec. 16. Naphtha cracks fell by over six dollars to US$138.40/ton premium, lowest since Jan. 13 South Korea's Honam bought 25,000 tons of full-range naphtha at premiums of US$$9-10/ton to Japan spot quotes on a cost-and-freight basis, the highest deal price seen in the country since Jan. 6. Samsung Total has failed to secure H1- March or H2-February cargoes since last week due to limited offers on naphtha for more than 75% paraffinic content. Supply of heavy naphtha is abundant, but very light grade is short due to upcoming refinery maintenance in Saudi Arabia. However, supply has also been affected on upcoming cracker maintenance in Asia and Europe.