Asian naphtha prices fell on Tuesday, hit by weaker crude futures but its premium against Brent hovered above $200, supported by a tight regional market caused by strong South Korean demand. The key-open-spec naphtha contract for first-half July fell to $727.50 from the previous day's $729.25 a tonne, on a cost-and-freight (C&F) basis.
The backwardation in the first halves of July and August widened to $4.50 a tonne from $4.25 on Monday. The ICE Brent/naphtha crack - the premium paid for naphtha against Brent crude prices - steadied at $202/$203 a tonne from the previous day, just $23 off its all-time high recorded earlier this month. "Demand is high as petrochemical firms are actively looking for spot supplies," said a Seoul-based trader.
South Korea's LG Petrochemical and Honam Petrochemical have spot requirements for second-half July deliveries. June Singapore naphtha swaps were valued at a steady $77.50 a barrel from the previous session. ICE July Brent crude gained 23 cents to $69.94 a barrel by 0336 GMT, up slightly after settling down 98 cents on Monday.
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