SINGAPORE: Asia’s naphtha crack fell at the start of the week, extending its decline despite expectations of higher supply inflows, as a tepid demand outlook weighs on the market.
The naphtha crack fell 25 cents to a discount of $41.63 a tonne on Monday, while the second-half September naphtha price was $6.25 a tonne lower than the following month.
“Demand from the petrochemical sector remains constrained by ongoing run cuts at ethylene crackers and maintenance plans at a few units in the region,” said Krystal Chung, senior analyst for light distillates at Refinitiv.
The gasoline market also remains underpinned by a slower demand outlook for transport fuels amid recessionary fears. Front-month margins for 92 RON continue to hover below that of low sulphur fuel oil in recent trading sessions, Refinitiv data shows.
India’s MRPL offered 35,000 tonnes of 95 RON for loading from Sept. 9-11, its website showed. The tender closes on Aug. 17.
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