Naphtha crack in Asia for front-month H2-November recovers from a three-week low

05-Oct-15

Naphtha crack for front-month second-half November in Asia recovered from a three-week low to reach a six-session high of US$87.1/ton on Thursday, supported by demand, as per Reuters. Traders said South Korea had likely completed most of its purchases for cargoes delivering in first-half November through private negotiations and open tenders. Japan's Idemitsu was in the market buying H1-November naphtha, with the premium estimated at US$2.25-2.50/ton to Japan quotes on a cost-and-freight (C&F) basis, a trader unrelated to the company said. Taiwan's CPC was also in the market seeking full-range naphtha for November 1-25 arrival at Kaohsiung through a tender closing on October 1. Offers are to stay valid until October 2. "Supply feels tighter due to refinery maintenance in the Middle East," a North Asian trader said. Saudi Aramco will shut a 400,000-barrels-per-day (bpd) refinery in Rabigh for 50 days of maintenance starting in early October. The refiner is a major exporter of naphtha to Asia. India's Bharat Petroleum Corp Ltd (BPCL) sold 35,000 tonnes of naphtha to Trafigura for October 21-23 loading from Mumbai at a premium of about $16 a tonne to Middle East quotes on a free-on-board (FOB) basis. This was higher compared to the US$13/ton premium BPCL had fetched from Petro-Diamond previously for a cargo lifting on October 9-11 loading from the same port. Oil and Natural Gas Corp (ONGC) sold to Aramco Trading 34,500 tons of naphtha for October 22-23 loading from Hazira at a premium close to US$12.50/ton to Middle East quotes on an FOB basis. This was lower than the US$15/ton it had fetched from Petro-Diamond for a cargo lifting on October from the same port.