SINGAPORE: Asia's naphtha crack slipped to a 1-1/2-week low of $68.78 a tonne, weighed down by high Brent crude prices at above $64 a barrel.
- But naphtha fundamentals have improved this week for sellers as supplies were not as plentiful as before, traders said.
- This has supported prices by either keeping them stable or pushing them higher than before.
- South Korea's GS Caltex, for instance, paid a premium of around $7 a tonne for heavy full-range naphtha scheduled for first-half April delivery.
- This was similar to the premiums Hanwha Total paid on Feb. 20 and premiums SK Energy paid on Feb. 8.
- LG Chem had also bought naphtha for first-half April delivery but of a lighter grade at premiums of about $2 a tonne.
- It was unclear if the fuel was scheduled for Yeosu or Daesan arrival as LG Chem operates a cracker each at these locations.
- LG Chem on Feb. 12 paid 50 cents a tonne premium for naphtha scheduled for Feb. 12 arrival at Yeosu.
- Some buyers who were out to seek term cargoes could have been affected by the stronger fundamentals, traders said.
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