Asian naphtha prices continued to climb to an over two-month high of $891.00 a tonne on Thursday as demand increased on the back of improved petrochemical margins. India's Mangalore Refinery and Petrochemicals Ltd (MRPL) also sold 35,000 tonnes of naphtha for August 20-22 loading to Cargill at a premium of about $32 a tonne to Middle East quotes on a free-on-board (FOB) basis.
This was nearly 10 percent higher than a mid-August loading cargo it sold to PetroChina earlier at a premium of $29.50 a tonne, and is the highest premium MRPL has fetched since mid-May. Improved petrochemical margins have helped support demand for naphtha feedstock, traders said. "There's good demand as cracker run rates are up," said a Singapore-based naphtha trader.
In the Middle East, Tasweeq sold an August cargo at a premium of at least $25 a tonne to Middle East quotes, a trader said. But the levels could not be confirmed. Kuwait Petroleum Corp sold a mid-August cargo to Total at a premium of about $28-29 a barrel to Middle East quotes, higher than the $21 premium achieved for an early August cargo, traders said.
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