In our latest naphtha market commentary:
> Global naphtha cracks, flat prices and time spreads recover sharply amid rising Asian petrochemical appetite, incremental European gasoline blending demand
> Rotterdam-New York Harbor, AG-northeast Asia arbs briefly reopened but slammed shut by mid-week as plummeting freight bottomed out and saw mild recovery
> FOB ARA prices will likely have to do the heavy lifting to reopen the arbs; NYH sales price upside capped by higher y-o-y PADD 1 gasoline stocks
> Asian forward steam cracker margins align with open eastward arbs, signal naphtha favourability from August
> We maintain our view of a mild uptick in incremental naphtha cargoes moving from East to West, given expectations of propane weakness on unprofitable PDH margins
