Naphtha at 5 session high amid firm demand and low incoming European cargoes

21-Nov-16

Naphtha in Asia ended the week at a five-session high of US$82.8/ton, supported by firm demand and low levels of incoming European cargoes, as per Reuters.
China's Unipec has resumed issuing supply tenders for spot cargoes after a brief absence, traders said, and may have bought a cargo for December delivery after a few attempts but this could not immediately be confirmed. China turned a net importer of naphtha more than five years ago, with its monthly import volume hitting a peak of nearly 954,000 tons in December 2015. The country's monthly imports eased to below 450,000 tons in September 2016 and eyes are now on its spot demand volumes.

In the Philippines, JG Summit is to buy a total of 420,000 tons of naphtha for 2017 delivery to Batangas. The purchase tender has closed but not yet been awarded, traders said. Shut due to a fire, JX Nippon Oil & Energy Corp will restart the 21,200 bpd No. 3 reformer unit at its Kashima refinery in Japan on Friday but the company did not say when a 63,500 bpd condensate splitter will restart.
European cargoes flowing to Asia in the meantime were kept at low levels and this helped tightened supplies. Refinery capacity shut in for maintenance work in Europe and Russia remained relatively high in November at 1 mln bpd.