Asia's naphtha crack fell for a third day on Friday to hover near a four months low of $72.38 a tonne as market remained awash with supplies despite some demand emerging this week. South Korea's Hanwha Total bought more than 100,000 tonnes of heavy full-range naphtha for first-half December delivery at a discount of around $3 a tonne to Japan quotes on a cost-and-freight (C&F) basis.
Hanwha Total had on October 12 bought more than 50,000 tonnes of the fuel for second-half November delivery at a wider discount of $4. A Chinese buyer also came forward this week to buy naphtha for December delivery at a single-digit premium a tonne to Japan quotes on a C&F basis.
YNCC and Japan's Showa Denko had also locked in cargoes for first-half December delivery this week at discount levels. India's Bharat Petroleum Corp Ltd (BPCL) has an outstanding tender to sell 30,000 tonnes of naphtha for October 31 to November 2 loading from Mumbai.
Asia's gasoline crack recovered by 16 percent to $3.55 a barrel after falling to its lowest in more than two years in the previous session. But the current margin level still reflected a very weak market when compared to the average of $7.46 a barrel for the first nine months of this year.
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