- Front- month Japan naphtha swap time spread stable- Asia's ethylene-naphtha
spread narrows to 11.59% during week





Early April 6, the Asian naphtha market was
stable as traders took a wait-and see approach due to weak downstream
petrochemicals demand. Participants in trading were
cautiously optimistic that China's downstream market would improve. This could
lead to higher naphtha prices. The market reflected the relatively
balanced fundamentals, with the backwardation structure remaining unchanged in
midmorning trading April 6. The front-month Japan naphtha swap
spread was set at $6.50/mt by brokers, which is stable from April 5th's Asian
close. The downstream market in China, especially the
polymers, is the key to improving the naphtha industry. A trader
stated that if downstream demand rises, more ethylene will be consumed and the
naphtha industry would experience a rebound. Sources in
China...