Strong crude sends naphtha prices higher, may lead to cut in cracker rates.

摘要

Due to rising crude prices and strong demand, Asian naphtha traders have stepped away from the market as spot prices have spiked. Some cracker operators in Asia are even looking at reducing throughput in March as a result. Naphtha prices in Japan on March 8 were quoted at $1,092.50-1,095.50/mt, which represented a steep backwardation, and the ICIS reported on March 2 that cracker margins based on naphtha in northeast Asia had fallen by $74/mt into negative territory to -$17/mt, the lowest level seen since last Dec. In southeast Asia, margins declined by $81/mt but remained in positive territory at $26/mt. According to one Asia producer, "There is no move to cut rates for now, but our margins are getting narrower and narrower." Even as almost 1MM mt of naphtha cargoes were being shipped from the US to Asia, concerns over supply and prices could not be calmed.