SINGAPORE: Asia’s naphtha crack hit a four-month high of $65.48 a tonne on Thursday on strong buying interest as most crackers are running either at maximum mode or high rates to cater to plastics demand.

Naphtha is a feedstock for plastics and also for making gasoline, with firm demand for the former coming at a time when East-bound cargoes from Europe, the Mediterranean and the United States are seen lower in July versus May and June.

Malaysia-based Titan came forward to buy naphtha at premiums in the mid-single digit level a tonne to Japan quotes on a cost-and-freight (C&F) basis, industry sources said.

This sharply contrasted the parity Titan had paid on June 2. It was unclear if Titan had awarded a spot tender for second-half July naphtha last week.

Asia’s gasoline refining margin was at a 3-month high of $4.33 a barrel premium to Brent crude as renewed demand soaked up some supplies.—Reuters