Asia's naphtha crack extended gains to touch a 1-1/2 week high of $98.25 a tonne on Tuesday, but this was 21% lower compared with Dec. 12 when the value was near a two-year high.
Industry sources said Asian crackers have either trimmed runs or were contemplating to do so in view of bad petrochemical margins caused by high naphtha feedstock costs and abundant petrochemical supplies.
However, the specific run cuts of crackers could not be independently confirmed.
Some end-users were seeking naphtha, which remains the dominant raw material for crackers as alternative liquefied petroleum gas (LPG) typically replaces less than 20% of the former in most cases.
But costs of LPG, a commodity which is also needed for heating during winter, have also increased, industry sources said.
Malaysia-based Titan awarded a tender to buy naphtha for first-half February arrival at Pasir Gudang at premiums in the low $20s a tonne level to Japan quotes on a cost-and-freight (C&F) basis, the sources added.
Titan had on Dec. 11 paid more than $20 a tonne premium for a cargo scheduled for second-half January arrival, Reuters data showed.
Japan's Asahi Kasei had bought naphtha for second-half January delivery in the previous session.
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