April 11, 2024 11:56 GMT
Japan Naphtha Cracks Under Pressure in Q2: Platts
OIL PRODUCTS
The C+F Japan physical naphtha crack against brent is expected to remain under pressure in Q2 after hitting a 5-month low due to very narrow petchem margins, according to Platts.
- Additional supply from the Middle East after refineries return from maintenance have offset falling Russian naphtha flows.
- The CFR Japan naphtha physical crack v ICE brent fell to $23.30/mt to a five-month low on April 9, as a bearish naphtha market is outpaced by crude gains.
- Thin margins are likely to cap operating rates at Asian naphtha-fed steam crackers.
- S&P Global analysts expect the light naphtha market to remain under pressure in Q2 due to oversupply and weak demand, along with increased cracking of LPG as a substitute.
- The heavy naphtha market will be better supported by gasoline and aromatics buying.
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