Asia Naphtha/Gasoline-Naphtha margins above $40/T
SINGAPORE, June 27 (Reuters) - Asia's naphtha price was at a two-session low on Wednesday at $731.50 a tonne while margins held above $40 a tonne for the second day after hovering below $30 a tonne for about two weeks.
Spot demand and lower exports to Asia from India and Europe have boosted spot prices and offset the higher spot volumes coming out of the Middle East.
"There are not many barrels from Europe arriving in first-half August in Asia. That has supported spot prices," said a trader.
LG Chem emerged to buy spot cargoes for first-half August arrival. Traders said the South Korean petrochemical maker could have bought a 25,000-tonne open-spec naphtha cargo for first-half August arrival at Yeosu at parity to Japan quotes on a cost-and-freight (C&F) basis and 25,000 tonnes for its Daesan cracker at premiums of $1.00-$1.50 a tonne.
But this could not be immediately verified.
Just days ago, Honam paid a discount for cargoes arriving in second-half July.
Malaysia-based Titan was also out in the market and bought 30,000 tonnes of full-range naphtha for first-half August arrival at a discount of $2.50 a tonne to Japan quotes on a C&F basis.
Japan's Tonen was also seeking spot volumes this week but details were not available.
Saudi Aramco has sold at least 55,000 tonnes of July naphtha from its Ras Tanura refinery, bringing total spot volumes for next month from Middle East suppliers to more than 500,000 tonnes.
The premiums Saudi Aramco received was about $15 per tonne above Middle East quotes on a free-on-board (FOB) basis, largely steady compared to what it had fetched recently for another July cargo. This reflected that buyers were unwilling to risk losing the cargoes by bidding lower.
* NAPHTHA TENDERS: India's ONGC sold 35,000 tonnes naphtha for July 14-15 loading from Hazira to Gunvor at about $19.50 a tonne above Middle East quotes on a free-on-board (FOB) basis, up about 39 percent compared to a sale for an end June cargo also sold to Gunvor.
- Indian Oil Corp (IOC) offered around 35,000 tonnes of naphtha for July 20-22 loading from Dahej in a tender closing on July 4, with bids to stay valid until July 5.
- Bangladesh Petroleum Corporation will sell 170,000 barrels of naphtha to Singapore's Trafigura at discount of $1.40 a barrel to Singapore quotes, the lowest this year and sharply lower than the previous sale in April.
GASOLINE CRACKS STAY FIRM
Gasoline margins were at a 2-1/2 week high of $5.53 a barrel premium as seasonal peak demand in India supported the market.
Hindustan Petroleum Corp Ltd (HPCL) was seeking 22,000 tonnes of Euro III grade gasoline and/or 13,000 tonnes of Euro IV grade for July 15-22 arrival at Mundra port in a tender closing on June 28. Offers are to stay valid until June 29.
"HPCL has not bought gasoline recently. But it's the school holidays in India, and this is usually the peak demand season," said a trader. [ID:nL3E8HR2NJ
* SINGAPORE CASH DEALS: Gunvor sold a 92-octane gasoline cargo for June 12-16 loading to Trafugura at $97.40 a barrel, making this the only light distillate deal in the cash market on Wednesday.
* REFINERY NEWS: Japan's Taiyo Oil Co Ltd said on Wednesday a small fire occurred in a storage area for liquefied petroleum gas at its sole Shikoku refinery at 11 a.m. (0200 GMT) and was extinguished by 11:18 a.m.
- Its 32,000 barrels per day No.2 crude distillation unit remained in operation, but its 88,000 bpd No.1 CDU and 25,000 bpd fluid catalytic cracker (RFCC) were shut for planned maintenance. LIGHT DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close OSN Naphtha CFR Japan M1 731.50 -2.00 -0.27 733.50 NAF-1H-TYO OSN Naphtha CFR Japan M2 731.50 -2.00 -0.27 733.50 NAF-2H-TYO OSN Naphtha Diff 0.25 0.25 N/A 0.00 <NAF-TYO-DIF Naphtha Netback FOB Sing 79.06 -0.22 -0.28 79.28 NAF-SIN Naphtha Diff FOB Sing -0.14 0.03 -17.65 -0.17 <NAF-SIN-DIF Naphtha-Brent Crack 42.47 -4.86 -10.27 47.33 <NAF-SIN-CRK Gasoline 97 102.24 0.69 0.68 101.55 GL97-SIN Gasoline 95 100.74 0.46 0.46 100.28 GL95-SIN Gasoline 92 97.40 0.75 0.78 96.65 GL92-SIN Gasoline crack 5.53 0.37 7.17 5.16 <GL92-SIN-CR
SWAPS ($/T) ASIA CLOSE Change % Change Prev RIC
(0830 GMT) Close Brent M1 91.87 0.43 0.47 91.44 Naphtha CFR Japan M1 732.50 0.00 0.00 732.50 <NACFRJPSWMc
> Naphtha CFR Japan M1/M2 -2.50 0.00 0.00 -2.50 <NACFRJPSDMc
> Naphtha CFR Japan M2 735.00 0.00 0.00 735.00 <NACFRJPSWMc
> Naphtha Japan-Sing Netback M1 19.70 0.45 2.34 19.25 <NAPTC4SPDMc
> Naphtha Japan-Sing Netback M2 21.30 1.80 9.23 19.50 <NAPTC4SPDMc
> Naphtha FOB Sing M1 79.20 -0.05 -0.06 79.25 <NAFOBSGSWMc
> Naphtha FOB Sing M1/M2 -0.10 0.15 -60.00 -0.25 <NAFOBSGSDMc
> Naphtha FOB Sing M2 79.30 -0.20 -0.25 79.50 <NAFOBSGSWMc
> Naphtha Cracks M1 -10.20 -0.43 4.40 -9.77 <NACFRJPCKMc
> East-West Naphtha M1 17.25 -2.50 -12.66 19.75 East-West Naphtha M2 16.75 -0.50 -2.90 17.25
715.25 2.50 0.35 712.75 <NAPCNWEAMc1 NWE Naphtha M1/M2 -3.00 2.00 -40.00 -5.00 <NAPCNWEASMc
> NWE Naphtha M2 718.25 0.50 0.07 717.75 <NAPCNWEAMc2 Crack NWE Naphtha-Brent M1 -12.06 -0.37 3.17 -11.69 <NAPCNWEACMc
> Crack NWE Naphtha-Brent M2 -11.87 -0.11 0.94 -11.76 <NAPCNWEACMc
> *Sing refers to Singapore
(Reporting by Seng Li Peng; editing by Keiron Henderson)
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