June 14, 2018 / 10:34 AM / 5 months ago

Asia Naphtha/Gasoline-Naphtha under pressure; Formosa buys

    SINGAPORE, June 14 (Reuters) - Asia's naphtha crack edged up 2 cents to $87 a tonne on
Thursday, the highest since June 6, supported by firm demand. 
    - But improving supplies impacted fundamentals and spot naphtha premiums came tumbling down
after hitting near four-year highs in late May. 
    - Taiwan's Formosa Petrochemical Corp, for instance, bought some 150,000 tonnes of
open-specification naphtha for second-half July delivery to Mailiao at premiums of about $8.50 a
tonne to its own price formula on a cost-and-freight (C&F) basis. 
    - The fresh premium was down more than 40 percent versus what Formosa paid on May 24 for
cargoes scheduled for first-half July delivery when premiums were at levels not seen since 2014.

    - The current premium was also the lowest Formosa has paid since late April. 
    
    * TENDERS: In India, Mangalore Refinery and Petrochemicals Ltd sold 35,000 tonnes of naphtha
for July 10-12 loading through a tender at about $24 a tonne above Middle East quotes on a
free-on-board (FOB) basis to Gunvor. 
    - This reflected a fall of at least 20 percent in premium levels versus the average premium
MRPL had received for three June cargoes. 
       
    * CRACKER NEWS: Japan's Osaka Petrochemical Industries Ltd has shut its
500,000-tonne-per-year (tpy) naphtha cracker on Thursday for maintenance which would last until
July 24.
    - Formosa Petrochemical will also be restarting a 700,000 tpy cracker in July as the unit was
idled on June 5 for a planned maintenance.
     
    * GASOLINE: Asia's gasoline crack recovered to a three-session high of $6.40 a barrel after
it hovered at a five-week low in the last two sessions. 
    - Falling supplies in Asia and the U.S. gave sellers a respite. 
    - Singapore's onshore light distillates stocks, which comprise mostly gasoline and blending
components for petrol, fell 9.8 percent or 1.372 million barrels to a six-week low of 12.628
million barrels in the week to June 13, official data showed.
    - This came a day after data from the Energy Information Administration showed that U.S.
gasoline stocks fell 2.3 million barrels last week.
    - This contrasted expectations in a Reuters poll for a 443,000-barrel gain.
    
    * CASH DEALS: Four gasoline deals but none on naphtha.

 LIGHT DISTILLATES                                                                               
 CASH ($/T)                       ASIA CLOSE      Change      % Change   Prev    RIC
                                                                         Close   
 OSN Naphtha CFR Japan M1                 661.50        8.50       1.30  653.00  NAF-1H-TYO
 OSN Naphtha CFR Japan M2                 651.50        8.50       1.32  643.00  NAF-2H-TYO
 OSN Naphtha Diff                          10.00        0.00       0.00   10.00  NAF-TYO-DIF
 Naphtha Netback FOB Sing                  71.92        0.94       1.32   70.98  NAF-SIN
 Naphtha Diff FOB Sing                      1.20        0.00       0.00    1.20  NAF-SIN-DIF
 Naphtha-Brent  Crack                      87.00        0.02       0.02   86.98  NAF-SIN-CRK
 Gasoline 97                               86.20        1.30       1.53   84.90  GL97-SIN
 Gasoline 95                               85.05        1.40       1.67   83.65  GL95-SIN
 Gasoline 92                               83.00        1.45       1.78   81.55  GL92-SIN
 Gasoline crack                             6.40        0.32       5.26    6.08  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 Sunil Nair)
  
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