SINGAPORE, April 9 (Reuters) - The Asian naphtha price
rebounded from a near nine-month low on Tuesday to reach a
two-session high of $890 a tonne while its margin touched a
six-session high of $101.60 a tonne, supported by demand.
Petrochemical maker YNCC bought around 50,000 tonnes of
naphtha for second-half May arrival at Yeosu at premiums of
about $18.00 a tonne, level to Japan quotes on a
cost-and-freight (C&F) basis.
Although these were the lowest premiums seen in South Korea
in more than two months, some traders said prices could be
bottoming out as the market had already factored in most of the
bearish information.
"All the bearish factors have been accounted for, such as
crackers' reduced run rates, stable alternative liquefied
petroleum gas (LPG) prices and high western exports to Asia,"
said a Singapore-based trader.
YNCC is likely the only operator in South Korea to have cut
runs at its 1.9 million tonnes per year (tpy) cracking complex
to about 90 percent of its capacity since second-half March. The
cuts follow a deadly explosion at a chemical unit owned by
Daelim, which is the co-owner of YNCC with Hanwha Chemical.
Abu Dhabi National Oil Co (ADNOC) in the meantime has sealed
its May 2013 to April 2014 contracts with its Asian buyers at
record premiums of $35.50 to $37.00 a tonne to its own price
formula on a free-on-board (FOB) for three naphtha grades.
Splitter and low-sulphur naphtha were concluded at $35.50 a
tonne premium each, about 51 percent higher than its previous
contract for the two grades lifting April 2012 to March 2013.
Its pentane naphtha contract for May 2013 to April 2014 was
inked at $37.00 a tonne premium, up 45 percent from about a year
ago.
GASOLINE MARGINALLY UP
The Asian gasoline margin rose 1.47 percent to a two-session
high of $6.88 a barrel, but was sharply lagging the January to
March average of $10.88 as heavier supplies weighed on the
value.
But traders said Vietnam's firm demand should give the
market some support. Petrolimex is seeking a total of 230,000
tonnes of gasoline for May to June delivery in a quarterly
tender.
The volumes were up 39 percent compared to the same quarter
last year at 165,000 tonnes. The quarterly tender is expected to
be awarded next week.
In the U.S., gasoline inventories were forecast to have
fallen 1.6 million barrels last week on average, a preliminary
Reuters poll of analysts showed.
* SINGAPORE CASH DEALS: Four trades.
- Phillips 66 sold to Shell a 95-octane gasoline cargo for
April 24-28 loading at $114.75 a barrel.
- On the other hand, Phillips 66 bought from BP a 92-octane
gasoline cargo for April 24-28 loading at $112 a barrel.
- Vitol bought a 92-octane gasoline cargo for April 26-30
loading at $112 a barrel from Total.
- Itochu bought a first-half June naphtha cargo from Vitol
at $881 a tonne.
LIGHT DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev RIC
Close
OSN Naphtha CFR Japan M1 890.00 2.00 0.23 888.00 (NAF-1H-TYO)
OSN Naphtha CFR Japan M2 873.00 2.00 0.23 871.00 (NAF-2H-TYO)
OSN Naphtha Diff 17.00 0.00 0.00 17.00 (NAF-TYO-DIF)
Naphtha Netback FOB Sing 95.66 0.22 0.23 95.44 (NAF-SIN)
Naphtha Diff FOB Sing 1.71 0.07 4.27 1.64 (NAF-SIN-DIF)
Naphtha-Brent Crack 101.60 1.25 1.25 100.35 (NAF-SIN-CRK)
Gasoline 97 117.96 0.53 0.45 117.43 (GL97-SIN)
Gasoline 95 114.75 -0.05 -0.04 114.80 (GL95-SIN)
Gasoline 92 112.00 0.20 0.18 111.80 (GL92-SIN)
Gasoline crack 6.88 0.10 1.47 6.78 (GL92-SIN-CRK)
SWAPS ($/T) ASIA CLOSE Change % Change Prev RIC
(0830 GMT) Close
Brent M1 105.12 0.11 0.10 105.01
Naphtha CFR Japan M1 871.00 1.25 0.14 869.75
Naphtha CFR Japan M1/M2 7.00 -0.25 -3.45 7.25
Naphtha CFR Japan M2 864.00 1.50 0.17 862.50
Naphtha Japan-Sing Netback M1 11.50 -1.00 -8.00 12.50
Naphtha Japan-Sing Netback M2 18.00 -0.75 -4.00 18.75
Naphtha FOB Sing M1 95.50 0.25 0.26 95.25
Naphtha FOB Sing M1/M2 1.50 0.00 0.00 1.50
Naphtha FOB Sing M2 94.00 0.25 0.27 93.75
Naphtha Cracks M1 -9.12 0.06 -0.65 -9.18
East-West Naphtha M1 19.50 -0.75 -3.70 20.25
East-West Naphtha M2 15.50 -1.00 -6.06 16.50
NWE Naphtha M1 851.50 2.00 0.24 849.50
NWE Naphtha M1/M2 3.00 -0.50 -14.29 3.50
NWE Naphtha M2 848.50 2.50 0.30 846.00
Crack NWE Naphtha-Brent M1 -10.84 0.17 -1.54 -11.01
Crack NWE Naphtha-Brent M2 -11.33 0.18 -1.56 -11.51
*Sing refers to Singapore
(Reporting by Seng Li Peng; editing by James Jukwey)
