October 15, 2012 / 11:26 AM / 6 years ago

Asia Naphtha/Gasoline-Lower on weaker European; demand steady

SINGAPORE, Oct 15 (Reuters) - Asian naphtha prices were
lower on Monday at a four-session low of $974.00 a tonne because
of weaker European gasoline values. Naphtha's refining margin
was also $6.58 weaker at $116.45 a tonne.
    Naphtha can be reformed into gasoline.
    "Demand in Asia looks steady from what I can see. The drop
is driven by the weaker Western sentiment," said a
Singapore-based naphtha trader.
    Some buying interest was also seen from petrochemical makers
during the day. South Korea's LG Chem bought 50,000 tonnes of
naphtha for second-half November delivery to Daesan at a premium
of $14.50 per tonne to Japan quotes on a cost-and-freight (C&F)
basis.
    LG Chem's latest purchase is higher than YNCC's 
purchase of 75,000 tonnes for second-half November at premiums
of $13.50-$14.00 per tonne to Japan quotes on a C&F basis.
 
    LG Chem last bought 50,000 tonnes of naphtha for November
earlier this month. Of the total, 25,000 tonnes were for
first-half delivery to Yeosu at a premium of $11.00-$12.00 to
Japan quotes and the remaining for the second half at $12-$13
premium. 
    More details emerged on Formosa Petrochemical Corp's
 last Friday's purchase of two-three naphtha cargoes
with traders saying that the premium levels were likely to have
been done at $11.00-12.00 to Japan quotes on a C&F Mailiao
basis. 

    * NAPHTHA TENDERS: 
    - Mangalore Refinery and Petrochemicals Ltd issued a tender
to sell 35,000 tonnes of naphtha for November 17-19 loading. The
tender closes on October 17 and is valid up to October 18.
    
    GASOLINE CRACKS SINKS TO 7-SESSION LOW
    Asia's gasoline cracks sunk to a seven-session low of $9.61
a barrel following lower European values and weakening Western
African demand for gasoline.
    Iraq's Ministry of Oil Marketing Company (SOMO) is seeking
1.643 million tonnes of 92-octane gasoline, 1.097 million tonnes
of gasoil with 500 parts-per-million (ppm) sulphur and 548,000
tonnes of LPG for delivery into Khor Al-Zubair terminal.
 
    The contract starts once it is effective up to December
2013, the document showed. The tender closes on Oct. 23. 
    Vietnam's Petrolimex also issued a tender to buy 10,000
tonnes of 95-octane gasoline for November 1-3 delivery. The
tender closed on October 12 and is valid to October 15.
          
    * SINGAPORE CASH DEALS: One naphtha deal, one gasoline deal.
    - Trafigura sold a 95-octane gasoline cargo for Nov. 2 to
Nov. 6 loading to Shell at $127.80 a barrel.
    - On naphtha, Mabanaft sold a first-half December/first-half
March spread deal to Shell at $29.50 a tonne. 
    
 LIGHT DISTILLATES                                                                                   
 CASH ($/T)                         ASIA CLOSE          Change   %        Prev Close  RIC
                                                                 Change               
 OSN Naphtha CFR Japan M1                       974.00   -11.00    -1.12      985.00  NAF-1H-TYO
 OSN Naphtha CFR Japan M2                       960.00   -11.50    -1.18      971.50  NAF-2H-TYO
 OSN Naphtha Diff                                14.00     0.50     3.70       13.50  NAF-TYO-DIF
 Naphtha Netback FOB Sing                       105.64    -1.25    -1.17      106.89  NAF-SIN
 Naphtha Diff FOB Sing                            1.64     0.00     0.00        1.64  NAF-SIN-DIF
 Naphtha-Brent  Crack                           116.45    -6.58    -5.35      123.03  NAF-SIN-CRK
 Gasoline 97                                    130.50    -1.40    -1.06      131.90  GL97-SIN
 Gasoline 95                                    127.80    -1.39    -1.07      129.19  GL95-SIN
 Gasoline 92                                    123.95    -1.40    -1.12      125.35  GL92-SIN
 Gasoline crack                                   9.61    -0.81    -7.77       10.42  GL92-SIN-CRK
                                                                                                     
 SWAPS  ($/T)                       ASIA CLOSE (0830    Change   %        Prev Close  RIC
                                    GMT)                         Change               
 Brent M1                                       114.34    -0.60    -0.52      114.94              
 Naphtha CFR Japan M1                           958.25   -12.25    -1.26      970.50                
 Naphtha CFR Japan M1/M2                          8.25    -1.25   -13.16        9.50                
 Naphtha CFR Japan M2                           950.00   -11.00    -1.14      961.00                
 Naphtha Japan-Sing Netback M1                    9.65    -1.00    -9.39       10.65                
 Naphtha Japan-Sing Netback M2                   13.10    -0.65    -4.73       13.75                
 Naphtha FOB Sing M1                            105.40    -1.25    -1.17      106.65                
 Naphtha FOB Sing M1/M2                           1.30    -0.10    -7.14        1.40                
 Naphtha FOB Sing M2                            104.10    -1.15    -1.09      105.25                
 Naphtha Cracks M1                               -8.78    -0.62     7.60       -8.16                
 East-West Naphtha M1                            -4.00     2.00   -33.33       -6.00              
 East-West Naphtha M2                             7.50     0.25     3.45        7.25              
 NWE Naphtha M1                                 962.25   -14.25    -1.46      976.50               
 NWE Naphtha M1/M2                               19.75    -3.00   -13.19       22.75                
 NWE Naphtha M2                                 942.50   -11.25    -1.18      953.75               
 Crack NWE Naphtha-Brent M1                      -9.62    -0.65     7.25       -8.97                
 Crack NWE Naphtha-Brent M2                      -9.33    -0.44     4.95       -8.89                
 *Sing refers to Singapore                                                                           
 

    

 (Reporting by Bohan Loh, editing by William Hardy)
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