Asia's naphtha crack fell for a third day to end the week at $54.85 a tonne, its lowest since Monday, but spot premiums were slightly higher as buyers emerged for June fuel. South Korea's YNCC bought a cargo for arrival at Yeosu in the first half of June at a premium of about $4.50 a tonne to Japan quotes cost and freight (C&F). - This was 50 cents higher than its purchase on April 4 for cargoes scheduled for arrival in the second half of May.
Japan's Mitsubishi Chemical also bought naphtha on Friday but for delivery in the second half of June. It had paid a premium in the low single digits to Japan C&F quotes, but this was pegged to a 45-day price formula rather than the usual 30 days, industry sources said.
Taiwanese end-users Formosa Petrochemical and CPC were also seeking naphtha. In the meantime, industry sources said the end of waivers on Iranian sanctions could lead to SK Energy and Hanwha Total buying more naphtha in the absence of South Pars. India's Mangalore Refinery and Petrochemicals sold 35,000 tonnes of naphtha to Vitol for May 23-25 loading from New Mangalore at premiums of $19.40 a tonne to Middle East quotes free on board (FOB).
This was higher than an April-loading cargo MRPL sold to Petro-Diamond at premiums of about $15 a tonne. Asia's gasoline crack recovered to $6.58 a barrel, its highest in three sessions after dipping to its lowest for more than a month in the previous session.
Gasoline stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to 923,000 tonnes, their lowest since Nov. 15, according to data from Dutch consultancy Insights Global, previously PJK International. Dutch trade unions and oil major Royal Dutch Shell have agreed to end a wage dispute that has hit production at the company's Pernis oil refinery and Moerdijk chemical plants in the Netherlands in recent weeks.
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