NEW DELHI: Asia’s naphtha refining profit margin posted a weekly loss of about 74% amid poor demand fundamentals from the petrochemicals sector and rising supplies, traders said.
The crack fell by about $1 to $49.47 a metric ton over Brent crude in contango structure. Plummeting crude prices capped the downside but tepid demand from China continued to weigh on prices. The first-half August naphtha fell below $500 for the first time since January 2021 on Friday.
Meanwhile, Japan’s ethylene output fell about 12% to 406.4 tons year-on-year, data from the Japan Petrochemical Industry Association showed on Friday.
Naphtha stocks at the key trading hub of Amsterdam-Rotterdam-Antwerp (ARA) fell to 290,000 tons in the week to June 22, compared with 312,000 tons in the prior week, Insights Global data showed. In a rare flow of trade, some cargoes were shipped to Finland from the ARA hub, the data showed.
India’s MRPL offered a total of 15,000 tons of benzene loading for delivery during July 17-21, the company said in a tender that closes on Friday.
The refiner also offered 25,000 tons of reformate for delivery during July 15-19 in a tender that also closes on Friday with same-day validity.
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