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Asian naphtha prices have finally emerged from their long slump, with cracks moving into positive territory in the past week for the first time since October and outright prices topping $350 per ton.
That is quite a reversal from the lows of early November, when naphtha prices were nearing $250/ton and the crack spread to ICE Brent was a miserable minus $189.
The fall in naphtha prices late last year was closely linked to the slump in the global economy, as naphtha is a key feedstock in the petrochemical industry. As economic activity began to dwindle, particularly in export-oriented China, demand for petrochemicals fell off a cliff.
Weakness was seen in the naphtha market as early as September, when South Korean buyers...