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2026-02-26 17:55:40
[LPG Surge Triggers April Buying Frenzy, Asian Naphtha Premiums Jump] ⑴ The Asian naphtha market surged on Thursday, primarily supported by the spillover effect of soaring LPG prices. With increasingly active offers and inquiries for April arrivals, market sentiment has clearly turned optimistic, with no signs of cooling short-term demand. ⑵ Multiple trade sources indicate that spot premiums for the first half of April have risen by at least $2 to $3 per ton compared to levels discussed earlier in March. More notably, a major Northeast Asian spot buyer has locked in April orders for open-label naphtha at a premium of nearly $10 per ton, a significant increase from previous transaction levels, reflecting the urgent demand for supply. ⑶ Meanwhile, another Northeast Asian end-user paid a premium of nearly $40 per ton for heavy naphtha arriving in April, demonstrating structural demand differences across different grades of naphtha. Two end-users directly involved in the trading pointed out that the continued strength of the LPG market will continue to provide sentiment support for naphtha in the coming weeks, as the two are substitutes in terms of cracking feedstock. (4) The bidding market also confirms this momentum. LG Chem and KPIC of South Korea have successively issued tenders to publicly tender for cargoes arriving in the first half of April. Regarding gasoline, major sellers are nearing completion of clearing their March loading needs, and the crack spread for 92-octane gasoline, driven by the strength of naphtha, has further strengthened slightly to above $8 per barrel, reflecting a seasonal repricing in the Asian light distillate market.
