Asian naphtha price spreads at 3-1/2 months high

Asia's naphtha price spread between first-half January and first-half February hit a three-and-half-month high premium of $2.50 per tonne powered by spot demand from North Asia. Taiwanese Formosa, Asia's top naphtha importer, was in talks to buy naphtha for January 11-25 arrival at Mailiao but the results were not known as its purchase tender would likely be awarded on December 1.
Japan's Mitsui Chemicals on Thursday paid a discount of about $2.50 a tonne to Japan quotes on a cost-and-freight (C&F) basis for around 25,000 tonnes of naphtha for first-half January delivery. It was unclear if the petrochemical had bought naphtha through a tender for first-half December delivery but on October 16 it paid a steeper discount of $12 for a second-half November cargo. But some traders were not convinced that the strength of the market would last due to falling crude prices and ample naphtha supplies. "Falling crude prices make naphtha buyers nervous," a trader said, adding that most buyers would prefer to hold back.