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Asia Naphtha/Gasoline-Margins rebound; LG Chem buys

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

November.

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

barrels.

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

barrel

- Unipec bought from Vitol a 92-octane gasoline cargo for Oct. 1-5 loading at $118.40 a

barrel.

- Sietco bought from PetroChina a 95-octane gasoline cargo for Sept. 28 to Oct. 2 at $121.80

a barrel.

- Sietco has also bought a naphtha cargo, for first-half November delivery, at $967 a tonne.

LIGHT DISTILLATES

CASH ($/T) ASIA CLOSE Change % Change Prev RIC

Close

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.


Brent M1

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)