Naphtha prices in Asia at two week highs

24-Jul-09

Approximately 1.7 mln tons of spot naphtha will be delivered to Asia next month from Saudi Arabia, Kuwait, Europe, the United States, Mediterannean and India, as against last month’s 1.4 mln tons of spot naphtha from the West, Kuwait and India for July deliveries. Despite a situation of oversupply in Asia, naphtha prices have touched two week highs. Crack Spread (profits/losses of refining Brent crude into naphtha) inched up to hover just below US$77 a ton, improving on spot demand from South Korea. However, the latest spot deal, between PetroChina and South Korean buyer Honam Petrochemical for 25,000 tons of naphtha for H2-August arrival at Yeosu has been concluded at a per ton discount of three dollars to Japan spot quotes on cost-and-freight (C&F) basis. This deal, concluded at discounts, is the lowest level in about two months.