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Asia's naphtha refining margin rose 5.8% to $79.33 a tonne on Thursday, its highest since Jan. 3, boosted by a rise in demand this week.

South Korea's Lotte Chem bought naphtha for arrival in the second half of February at Daesan and Yeosu at premiums of about $17.50 and $17.00 a tonne respectively to Japan quotes on a cost-and-freight (C&F) basis.

The purchase came in the same week that Hanwha Total and YNCC also bought naphtha for second-half February delivery. The combined volumes Hanwha Total and YNCC bought this week were seen at above 300,000 tonnes, industry sources said.

Japan's Asahi Kasei has also bought naphtha for second-half February delivery, but further details were not immediately available.

India's BPCL sold 35,000 tonnes of naphtha late on Tuesday for Jan. 26-27 loading from Kochi to BP at a premium of $38 to $38.50 a tonne to its own price formula on a free-on-board (FOB) basis.

This is down from the $44 to $45 a tonne premium BPCL had fetched, also from BP, for a cargo sold for Jan. 10-11 loading from the same port.

Aramco Trading is expected to move Italian naphtha to Asia after winning the Milazzo term tender for the first time.

Asia's gasoline crack edged up 11 cents to $3.81 a barrel after hitting a 6-1/2 month low in the previous session.

Copyright Reuters, 2020

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