- The Front-month Japan naphtha swap timepread narrows- Reforming spread increases 25% on month to $23.54/b



On March 22, the Asian naphtha markets saw
sentiments improve due to weak downstream demand and an uncertain macroeconomic
environment. Market participants were cautious about the near-term outlook for
the naphtha industry. The backwardation structure contracted in midmorning
trade on March 22. Brokers
pegged the April-May Japan naphtha Swap Spread at $7/mt. This was down
from $7.75/mt at March 21 Asian close. Demand was lower than
anticipated. Due to the high cost capital,
our losses are being compounded," an end user
said. "Moreover, the global economic situation is very poor. It's difficult for prices to move up because the
petrochemicals industry is closely linked with the economy. It's very difficult for prices to go up because the
petrochemicalsb> /b>industry is closely linked with the...