SINGAPORE, Sept 5 (Reuters) - The Asian naphtha and gasoline margins recovered on Thursday
to reach a two-session high each at $103.78 a tonne and $3.37 a barrel respectively after losses
in the previous session.
South Korea's LG Chem came forward to buy at least a total of 50,000 tonnes of naphtha for
delivery to Yeosu and Daesan in second-half October at premiums of $1.00 and $1.50 a tonne
respectively to Japan quotes on a cost-and-freight (C&F) basis.
This was double the premium YNCC had paid for 75,000 tonnes on Wednesday for second-half
October delivery to Yeosu.
Traders were divided as to when the supply glut - which had forced prices in South Korea to
flip to the negative zone on Sept. 2 before reverting back to premiums on Sept. 4 - would ease.
Some had their hopes on end October while others said it may likely be from second-half
The difference in sellers' opinions was reflected in a deal in Malaysia where Titan locked
in 30,000 tonnes of naphtha for second-half October delivery to Pasir Gudang at a discount of
$6.00 a tonne to Japan quotes on a C&F basis.
This was the lowest price the petrochemical maker had paid in about two years.
* CRACKER NEWS: Taiwan's CPC Corp is expected to ramp up operations at its new 700,000
tonnes per year (tpy) naphtha cracker to the maximum capacity by the first half of September
from current rates of 70 to 80 percent.
* NAPHTHA TENDERS: India's Essar Oil has cancelled a tender to sell 20,000 tonnes for Sept.
25-29 loading from Vadinar, with talk that the refiner may be aiming to sell a full,
medium-range size cargo of 35,000 tonnes at a later date instead.
GASOLINE SUPPLIES STAY HIGH
As for gasoline, the higher margin seen was possibly reacting to lower raw material Brent
crude prices and heavier draw of the automobile fuel by Malaysia recently although overall
weekly stocks in Singapore were higher.
Official data showed that the Singapore light distillates stocks, which comprise mainly
gasoline and gasoline blendstocks, jumped 12.2 percent to a four-month high of 11.261 million
Reformate and gasoline blend stocks were seen at about 344,000 tonnes in the week to Sept.
4, a surge of 85 percent in volumes from the previous week.
Of these 344,000 tonnes, about 30 percent was from the United Arab Emirates (UAE).
But shipments to Malaysia from Singapore between Aug. 29 and Sept. 4 more than doubled to
236,000 tonnes versus the previous week.
* SINGAPORE CASH DEALS: Four deals, of which three were on gasoline.
- Total bought from Arcadia a 92-octane gasoline cargo for Sept. 20-24 loading at $118.80 a
- Unipec bought from Vitol a 92-octane gasoline cargo for Oct. 1-5 loading at $118.40 a
- Sietco bought from PetroChina a 95-octane gasoline cargo for Sept. 28 to Oct. 2 at $121.80
- Sietco has also bought a naphtha cargo, for first-half November delivery, at $967 a tonne.
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
OSN Naphtha CFR Japan M1 968.00 -2.50 -0.26 970.50 (NAF-1H-TYO)
OSN Naphtha CFR Japan M2 964.50 -3.00 -0.31 967.50 (NAF-2H-TYO)
OSN Naphtha Diff 3.50 0.50 16.67 3.00 (NAF-TYO-DIF)
Naphtha Netback FOB Sing 105.14 -0.27 -0.26 105.41 (NAF-SIN)
Naphtha Diff FOB Sing 0.74 0.18 32.14 0.56 (NAF-SIN-DIF)
Naphtha-Brent Crack 103.78 2.23 2.20 101.55 (NAF-SIN-CRK)
Gasoline 97 124.65 0.25 0.20 124.40 (GL97-SIN)
Gasoline 95 121.80 0.20 0.16 121.60 (GL95-SIN)
Gasoline 92 118.60 0.20 0.17 118.40 (GL92-SIN)
Gasoline crack 3.37 0.83 32.68 2.54 (GL92-SIN-CRK)
For a list of derivatives prices, including margins, please
double click the RICs below.
Naphtha CFR Japan M1
Naphtha CFR Japan M1/M2
Naphtha CFR Japan M2
Naphtha Japan-Sing Netback M1
Naphtha Japan-Sing Netback M2
Naphtha FOB Sing M1
Naphtha FOB Sing M1/M2
Naphtha FOB Sing M2
Naphtha Cracks M1
East-West Naphtha M1
East-West Naphtha M2
NWE Naphtha M1
NWE Naphtha M1/M2
NWE Naphtha M2
Crack NWE Naphtha-Brent M1
Crack NWE Naphtha-Brent M2
(Reporting by Seng Li Peng, editing by William Hardy)