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Asian naphtha prices hit the highest level in two years
According to Dow Jones News, on November 3, due to crude oil prices, Asian spot prices of naphtha have reached the highest level since September 2008. Market participants said that due to the tight supply of naphtha in the Middle East and the support of spot purchases in Northeast Asia recently, the Asian naphtha market has performed strongly. Traders said weaker ethylene prices have increased concerns among some crackers that they may cut operating rates soon, but expect that naphtha will remain firm until crackers actually cut operating rates. Cracker manufacturers may currently avoid cuts in operating rates due to optimistic profit margins for the production of benzene, toluene, and xylene before the end of the year. Brokers said that the price of the open specification naphtha, which arrived in the second half of December in Japan, rose by US$6.5 to US$796-799 per ton. The difference between the second half of December/the first half of January is +3 USD/ton, and the second half of December/the second half of January is +5.5 USD/ton.