- Front month Japan naphtha swap spreads narrows on
increased supply- Reforming spread increased
$1.60/b to $21.15/b





Spot activity in the Asian naphtha markets
increased slightly on March 13, with one tender being issued amid bearish
sentiment. The market participants remain
pessimistic about the near-term outlook for naphtha markets as they expect to
face headwinds from weak downstream petrochemical demand and an increase in
naphtha supplies. The derivatives market reflected this weaker
sentiment, with the backwardation structure shrinking in mid-morning trading
March 13. The front-month April-May Japan naphtha swap
spread was pegged at $7/mt by brokers, down $1/mt from $8/mt at March 10 Asian
close. The benchmark C+F Japan naphtha price fell to
$680.50/mt for the third day in a row at the March 10 Asian closing. A market
source stated that although it is not expected...