Asian naphtha crack recovered to a three-session high on Monday, as sellers are expecting South Korean petrochemical makers to start replenishing stocks at a time when supplies have stayed tight. Traders have gotten past the shock that South Korea's top ethylene maker had bought last Friday at least 75,000 tonnes of naphtha for second-half September arrival at a discount of around $2.00 a tonne to Japan spot quotes on a cost-and-freight (C&F) basis despite the tight supplies.
Europe has halted exports, following refiner run cuts and strong demand for the light fuel for gasoline and petrochemicals production. "But whether or not gasoline demand in Europe will sustain remains to be seen. The summer driving season should be coming to an end," said a Singapore-based trader.
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