Naphtha crack in Asia slipped by 2.9% to US$150.5/ton, Reuters data showed. But the value was still about 10 percent higher than what the average was for January-April, with traders saying that tighter supplies and strong demand were keeping the current market firm compared.
South Korea's LG Chem has bought 25,000 tons of naphtha for June 8-23 delivery to Yeosu and similar volumes for second-half June delivery to Daesan. Price details were not immediately available but traders estimated the premiums for the Yeosu cargo to be around US$19/ton and that for Daesan at around US$21/ton to Japan quotes on a cost-and-freight (C&F) basis. On May 7 it paid US$19-20/ton premiums for H1-June cargoes. These were by far the highest premiums LG Chem had paid for naphtha bought through tenders since April 2013. Inventories held by petrochemical makers could be low and that they may need to replenish their stocks despite the high prices. Some sellers aim higher than US$21/ton in view of the tight prompt supply situation caused by low Indian exports and possible delays in western cargoes arriving in H1-June.
13-May-14 
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