July 16, 2012 / 12:17 PM / in 5 years

Asia Naphtha/Gasoline-Naphtha margins at 3-mth high

SINGAPORE, July 16 (Reuters) - Asia's naphtha price edged up
$1 on Monday to hover around a 1-1/2-month high of $845 a tonne
on strong Brent crude, while margins hit a two-month high of
$84.95 a tonne premium, supported by improved petrochemical
demand. 
    Crackers that have previously cut runs have mostly returned
to full operational rates. South Korea's YNCC fully restored
operational rates at its 1.9 million tonnes per year (tpy)
naphtha cracking complex on Monday, after reducing runs to 90
percent of its capacity in late May. 
    This came after Malaysia-based Titan and Thailand's IRPC had
also increased cracker runs early this month. 
 
    "Petrochemical margins were really bad back in June, but
these have improved as China was restocking over the last
two-three weeks," said a trader.
    But how long these better times can last remained a question
for all. 
    "Maybe it can last another two-four weeks because some
traders like to build up stocks before the fourth-quarter," the
same trader added. 
    The weeks leading up to Christmas season usually sees lower
demand as manufacturers would have already completed all their
pre-festive orders. 
    
    * OTHER CRACKER NEWS: Taiwan's CPC has restarted its 380,000
tonnes per year (tpy) No. 4 cracker over the weekend following a
two-week shutdown for repairs. 
    - But it will skip buying spot full-range naphtha due to
sufficient stocks. 
   
    * NAPHTHA TENDERS: Essar offered 28,000-30,000 tonnes of
naphtha for Aug. 4-6 loading in a tender closing on July 18. 
    - MRPL sold 35,000 tonnes for Aug. 8-10 loading to
PetroChina at about $29.50 a tonne above Middle East quotes on a
free-on-board (FOB) basis, the highest in about two months. 
    - It has an outstanding tender to sell 35,000 tonnes for
Aug. 20-22 loading. 
        
    * GASOLINE CRACKS GAIN
    Gasoline margins extended gains to reach a two-month of
$9.16 a barrel on tight supplies and healthy demand. 
    The margins are the difference between 92-octane gasoline
outright price at $110.50 a barrel and September Brent crude at
$101.34 a barrel. 
    For most of July so far, there were repeatedly more buyers
looking for cargoes in the Singapore cash market.
    The stronger fundamentals allowed rare gasoline exporter
MRPL to fetch reasonably good premiums, traders said. 
    It got a premium of about $3.75 a barrel to Middle East
quotes on a FOB basis for 25,000 tonnes of 92-octane gasoline
sold to Gunvor for Aug. 8-10 loading from New Mangalore port.
 
    This was the highest premium fetched so far for a total of
three cargoes sold this year, including the Aug. 8-10 parcel. 
    In Sri Lanka, demand remained healthy, with Ceypetco seeking
240,000 barrels of gasoline, likely to be combined with 70,000
barrels of 0.25 percent sulphur gasoil of Aug. 21 delivery in a
tender closing on July 24. 
      
    * SINGAPORE CASH DEALS: Three gasoline deals but none on
naphtha. 
    - PetroChina sold to Shell two 97-octane gasoline cargoes
for July 31 to Aug. 4 loading, each at $117.30 and $117.40 a
barrel. 
    - Chevron sold to Trafigura a 92-octane gasoline cargo, also
for July 31 to Aug. 4 loading at $110.50 a barrel. 
    
    
        
 LIGHT DISTILLATES                                                                     
 CASH ($/T)                     ASIA CLOSE  Change  % Change   Prev      RIC
                                                               Close     
 OSN Naphtha CFR Japan M1           845.00    1.00       0.12    844.00  NAF-1H-TYO
 OSN Naphtha CFR Japan M2           837.00    3.00       0.36    834.00  NAF-2H-TYO
 OSN Naphtha Diff                     8.00   -2.00     -20.00     10.00  NAF-TYO-DIF
 Naphtha Netback FOB Sing            91.62    0.11       0.12     91.51  NAF-SIN
 Naphtha Diff FOB Sing                1.27    0.01       0.79      1.26  NAF-SIN-DIF
 Naphtha-Brent  Crack                84.95    2.35       2.85     82.60  NAF-SIN-CRK
 Gasoline 97                        117.35    1.81       1.57    115.54  GL97-SIN
 Gasoline 95                        113.70    0.40       0.35    113.30  GL95-SIN
 Gasoline 92                        110.50    0.40       0.36    110.10  GL92-SIN
 Gasoline crack                       9.16    0.58       6.76      8.58  GL92-SIN-CRK
                                                                                       
 SWAPS  ($/T)                   ASIA CLOSE  Change  % Change   Prev      RIC
                                (0830 GMT)                     Close     
 Brent M1                           101.33    0.69       0.69    100.64              
 Naphtha CFR Japan M1               834.00    6.50       0.79    827.50                
 Naphtha CFR Japan M1/M2              4.25    0.25       6.25      4.00                
 Naphtha CFR Japan M2               829.75    6.25       0.76    823.50                
 Naphtha Japan-Sing Netback M1       15.00   -4.75     -24.05     19.75                
 Naphtha Japan-Sing Netback M2       16.15   -4.55     -21.98     20.70                
 Naphtha FOB Sing M1                 91.00    1.25       1.39     89.75                
 Naphtha FOB Sing M1/M2               0.60    0.05       9.09      0.55                
 Naphtha FOB Sing M2                 90.40    1.20       1.35     89.20                
 Naphtha Cracks M1                   -9.58    0.00       0.00     -9.58                
 East-West Naphtha M1                18.00    0.25       1.41     17.75              
 East-West Naphtha M2                16.50    0.25       1.54     16.25              
 NWE Naphtha M1                     816.00    6.25       0.77    809.75               
 NWE Naphtha M1/M2                    2.75    0.25      10.00      2.50                
 NWE Naphtha M2                     813.25    6.00       0.74    807.25               
 Crack NWE Naphtha-Brent M1         -11.55    0.00       0.00    -11.55                
 Crack NWE Naphtha-Brent M2         -10.97   -0.02       0.18    -10.95                
 *Sing refers to Singapore                                                             
 
 (Reporting by Seng Li Peng; editing by James Jukwey)

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