Asia's naphtha crack slipped marginally to a two-session low of $140.95 a tonne on Monday but demand has remained firm as most Asian petrochemical units were running at high rates. South Korea's LG Chem and Japan's Idemitsu have emerged to buy naphtha for first-half February delivery but the results were not clear, traders said. "I think gasoline was also contributing to the naphtha crack which has been strong," said a North Asian trader.
Depending on the grades, naphtha can be reformed into gasoline or be used as a motor fuel blending component. Other traders said the collapse of Brent crude prices against strong demand for petrochemical feedstock had also boosted the crack value. Over in India, Essar Oil has offered a third spot naphtha cargo for January loading, bringing its total next month to up to 105,000 tonnes. The 33,000-35,000 tonnes cargo is scheduled for January 27-31 loading from Vadinar through a tender closing on December 29.