Asia's naphtha crack extended losses for the second straight day on Friday to reach a 1-1/2-week low of $57.18 as healthy demand was offset by expectations of high supplies. Cargoes arriving in Asia from Europe and the Mediterranean in July are expected to stay at high levels as seen in June. South Korea's LG Chem and SK Energy were seeking naphtha, coming shortly after YNCC, Hanwha and Malaysia-based Titan had picked up cargoes this week.
LG Chem paid premiums of about $1.50 a tonne to Japan quotes on a cost-and-freight (C&F) basis for 30,000 tonnes of naphtha for July 1-31 delivery to Yeosu, traders said. SK Energy on the other hand had paid premiums of about $3.50 a tonne to Japan quotes on a C&F basis for heavier grade naphtha scheduled for first-half August delivery, traders added. But neither of the deals could be independently confirmed as buyers do not typically comment on their trades.
Asia's gasoline crack recovered 7.6 percent or 64 cents to $9.04 a barrel after falling to its lowest in more than three months in the previous session. Cash deals in the Singapore market were vibrant while stock levels in both Europe and Singapore were down in the latest weekly data. Gasoline stocks held independently in the storage hub of Amsterdam-Rotterdam-Antwerp (ARA) slipped 0.2 percent or to 890,000 tonnes in the week to June 15, making this the lowest weekly volume since March 23, data from Dutch consultancy PJK International showed.
The lower inventories in ARA were in line with Singapore onshore light distillates stocks and contrasted the unexpected jump in US stock levels. Six gasoline deals totalling 300,000 barrels were traded, making this the highest volumes transacted in a single session since May 26.
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