June 22, 2018 / 10:56 AM / 9 months ago

Asia Naphtha/Gasoline-Formosa buys naphtha; prices at around 3-month low

    SINGAPORE, June 22 (Reuters) - Asia's naphtha crack ended the week at a two-session low of $71.20
a tonne as high oil prices and expanding supplies countered strong demand, with at least four buyers
seeking cargoes at the same time. 
    - Taiwan's Formosa Petrochemical Corp, also Asia's top naphtha importer by volume, bought some
100,000 tonnes of open-specification naphtha for August arrival at Mailiao at a premium of $4.50 to
$4.75 a tonne to its own price formula on a cost-and-freight (C&F) basis. 
    - The premium of Formosa's latest purchase, which came about 1-1/2 weeks after it had locked in
cargoes for second-half July arrival, marked the lowest Formosa has paid since March 15.
    - South Korea's GS Caltex paid a premium of about $14 a tonne to Japan quotes on a C&F basis for
heavy full-range naphtha for first-half August delivery. 
    - This was down from the $17 to $18 a tonne premium GS Caltex had paid on June 6. 
    - Japan's Idemitsu Kosan on the other hand paid levels within $8 to $9 a tonne to Japan quotes on
a C&F basis for naphtha, also scheduled for first-half August delivery, traders said. 
    * CRACKER NEWS: A fire broke out at Mitsui Chemicals' plant in Osaka, western Japan, on Thursday,
but did not directly affect its 500,000 tonnes per year (tpy) cracker which was already shut for a
scheduled maintenance since June 14. 
    - But it was unclear if the cracker could restart as planned, its spokesperson said.
    * TENDERS: India's Nayara Energy, previously known as Essar Oil, offered a small volume of up to
12,000 tonnes of heavy naphtha (with a minimum content of 50 percent total paraffins) for July 27-31
loading from Vadinar through a tender closing on June 26. 
    - It had this week sold open-specification naphtha with a minimum content of 65 percent total
paraffins to Aramco Trading for July 11-15 loading from Vadinar at premiums of about $24 to $25 a
tonne to Middle East quotes on a free-on-board (FOB) basis.
    * GASOLINE: Asia's gasoline crack was at a three-session high of $4.26 a barrel but stocks were
    - Stockpiles in the U.S. and Singapore had increased according to data released this week.
    - But Europe stockpiles were seen lower, possibly due to demand from West Africa, which will be
pulling in around 700,000 tonnes of petrol from the former this month.
    - Gasoline stocks held independently at the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub for instance declined by 3.6 percent to reach a two-week low of 1.063 million tonnes in
the week to Thursday, data from Dutch consultancy PJK International showed.
    - But compared to the same period of 2017, current ARA gasoline inventories reflected a 22.3
percent increase. 
    * TENDERS: Indonesian Pertamina, Asia's top gasoline importer was seeking 200,000 barrels of
92-octane grade from the spot market for July 6-8 loading from either Singapore or Malaysia through a
tender closing on June 25, with offers to stay valid until June 28. 
    * CASH DEALS: One deal each on naphtha and gasoline.
 LIGHT DISTILLATES                                                                                   
 CASH ($/T)                           ASIA CLOSE      Change    % Change      Prev    RIC
 OSN Naphtha CFR Japan M1                     628.00      3.50          0.56  624.50  NAF-1H-TYO
 OSN Naphtha CFR Japan M2                     622.00      3.50          0.57  618.50  NAF-2H-TYO
 OSN Naphtha Diff                               6.00      0.00          0.00    6.00  NAF-TYO-DIF
 Naphtha Netback FOB Sing                      68.26      0.39          0.57   67.87  NAF-SIN
 Naphtha Diff FOB Sing                          0.85      0.05          6.25    0.80  NAF-SIN-DIF
 Naphtha-Brent  Crack                          71.20     -0.55         -0.77   71.75  NAF-SIN-CRK
 Gasoline 97                                   81.65      0.65          0.80   81.00  GL97-SIN
 Gasoline 95                                   80.45      0.65          0.81   79.80  GL95-SIN
 Gasoline 92                                   78.50      0.65          0.83   77.85  GL92-SIN
 Gasoline crack                                 4.26      0.11          2.65    4.15  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                                                                          
 *Sing refers to Singapore                                                                           

 (Reporting by Seng Li Peng, editing by Louise Heavens)
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