Asia's naphtha crack for front-month second-half April fell to a three-session low of $57.83 a tonne on Monday, some 40 percent below where it was a year ago, reflecting a persistent glut. Purchase tenders from petrochemical makers were muted and sellers could be trying to offload their cargoes through private negotiations, traders said.
But buyers were opting to wait-and-see, they added. "Market sentiment is weak as there is less demand for naphtha due to coming cracker maintenance in North Asia," said a North Asian trader. Although refineries are entering into the start of the maintenance season from this month, traders said the impact of naphtha demand lost is greater than the supply that would be curtailed.
Not only were there ample cargoes of Western origin in Asia, but Indian spot cargoes for March shipment were abundant too. India's average monthly exports between December 2015 and March 2016 at about 600,000 tonnes were higher than the monthly average of 550,000 tonnes for 2015. Although the increase appeared small on a monthly basis, it came at a time when there were already excess supplies in the market.
GASOLINE GAINS Asia's gasoline crack was at a six-session high of $8.16 a barrel, with brisk transactions for cash deals in the Singapore market. A total of 300,000 barrels were done in the single session, bringing total transacted volumes from March 1-7 to about 1.26 million barrels versus 500,000 barrels for the first seven trading sessions of February.
Singapore Hin Leong bought two 92-octane grade cargoes for March 22-26 loading, one of which was from Socar at $47.20 a barrel and another from Total at $47.28 a barrel. Chevron sold a 92-octane grade cargo for March 26-30 loading to Shell at $50.90 a barrel and a 92-octange grade cargo to Phillips 66 at $47.30 a barrel. Lukoil bought from Total a 92-octane grade cargo for March 27-31 loading at $47.30 a barrel. PetroChina bought from Gunvor a 92-octane grade gasoline cargo for March 27-31 loading at $47.30.
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