- Unexpected weakness in the US gasoline market may have affected Asia, traders said, as naphtha is also a blending component for petrol.
- But fundamentals for naphtha could still stay strong in the short haul.
- "Current premium levels are 'toppish' but the strength could hold for a while as demand for cargoes delivering in second-half June will start soon," a Singapore-based trader said.
SPOT DEALS: Taiwanese Formosa, Asia's top naphtha importer, was to buy naphtha for first-half June arrival at Mailiao but the offer levels were not clear.
- The purchase tender is to be officially awarded on
Thursday.
- It was also unclear what volumes of naphtha Formosa would buy as it had bought LPG this week to replace some of the naphtha feedstock in June.
TENDER NEWS: Indian Bharat Petroleum Corp Ltd's naphtha sales premiums this week for May cargoes were at their highest for the seller in over 10 months.
- BPCL sold a 33,000-tonne cargo for May 13-15 and another 35,000-tonne cargo for May 10-12 at premiums of about $15 and $18 a tonne to Middle East quotes on a free-on-board (FOB) basis respectively.
- Both cargoes went to Itochu, which has been an active seller of naphtha to Trafigura this month in the Singapore cash market. - Trafigura on the other hand bought 55,000 tonnes of naphtha for end May loading from Sikka from Reliance at premiums slightly above $16 a tonne to Middle East quotes on a FOB basis.
- This added to its unusual heavy purchases of cargoes from the Singapore cash market.
- Japan's Marubeni bought from MRPL a 35,000-tonne cargo for June 8-10 loading from New Mangalore, India, at premiums of about $17.00 to $17.50 a tonne to Middle East quotes on a FOB basis.
- Bangladesh Petroleum Corp (BPC) is set to sell 170,000 barrels of naphtha for May 11-13 loading from Chittagong to Vitol at a discount of 70 cents to Singapore quotes.
GASOLINE: Asia's gasoline crack was at a two-week low of $10.62 barrel.
CASH DEALS: Nine deals.
- Trafigura bought three of the five naphtha deals but sold all four gasoline cargoes to buyers PTT, Unipec, Gunvor and Lukoil at prices from $62.60 to $62.70 a barrel.