Asia's naphtha crack extended gains to hit a 1-1/2 week high of $42.28 a tonne on Thursday as strong demand helped soak up excess supplies, boosting spot prices. Traders said South Korea's Hanwha Total could have paid a discount of about $1.50 a tonne to Japan quotes on a cost-and-freight (C&F) basis for heavy full-range grade scheduled for second-half January delivery. The current price was higher than the discount of $4 a tonne Hanwha Total paid on December 10.
Japan's Idemitsu was also seeking naphtha, traders said, a day after Taiwan's Formosa and Malaysia-based Titan were looking to purchase cargoes. Formosa could have paid a discount of around $4 a tonne, higher than the discount of around $7 it paid on November 30, the traders added. Titan on the other hand may have paid a discount in the mid-single digits a tonne for naphtha scheduled for second-half January delivery.
Titan in late November paid a discount in the high-single digits a tonne. The tender results were not verified with the buyers as companies do not typically comment on their deals or operations. Indian Oil Corp (IOC) was looking to sell up to 30,000 tonnes of naphtha for Jan. 1-3 2019 loading from Kandla through a tender closing on December 13.
IOC does not regularly offer cargoes out of Kandla although it sells naphtha from Chennai on a regular basis. Singapore onshore light distillates stocks, which comprise mostly gasoline and blending components for petrol, eased 1.77 percent or 246,000 barrels to a three-week low of 13.63 million barrels in the week to December 12, data from Enterprise Singapore showed.
Asia's gasoline crack hit a discount of 93 cents a barrel versus a discount of 81 cents in the previous day. What was once a profitable fuel for refiners is now in a persistent glut. The Asian gasoline crack level was at a premium of $9.79 a barrel a year ago.