Naphtha Report: The Cream of The Crop-J
The international naphtha market continued to see shocking strength unfold. There has been decent buying in the NWE naphtha spreads, compared to the likely profit-taking flow in the East, although both markets have been quite quiet in the fortnight. Weaker crude was helpful for the cracks, although this has now been reversed with a stronger crude print. Petchem buying has supported both regions. Chinese funds selling the PX-MOPJ spread have supported the Asian naphtha as they sell this in anticipation of further economic issues. Petchem flow has been really important in supporting prices in the past two weeks. There was significant buying in the Euro Cal’25 crack by trade houses, likely for ethylene hedging, which drove prices up as the NWE propane complex continues to be extraordinarily strong. In the East, the Bal-Aug/Sep MOPJ also strengthened due to propane’s influence as players sold into the E/W and MOPJ spreads.