SINGAPORE: Asia's naphtha crack edged to a six-session high of $45.78 a tonne on Tuesday on the back of steady demand from North Asia though traders said overall open-specification grade supplies were ample.
Taiwan's Formosa Petrochemical Corp, Asia's top naphtha importer, bought open-specification naphtha for second-half July delivery to Mailiao at discounts of about $5 a tonne to Japan quotes on a cost-and-freight (C&F) basis.
The discount was narrower than the $6 to $7 discount it paid on May 26 for first-half July cargoes, traders said.
"By right, the market should weak as Formosa is to shut a cracker for maintenance. But sellers' sentiment today seems stronger," said a Singapore-based trader.
Details of the volumes Formosa bought were not known but traders said the quantities were small as the petrochemical maker is replacing more than 10 percent of its naphtha feedstock with cheaper liquefied petroleum gas (LPG).
Japan's Idemitsu bought a cargo at a discount of about $3 a tonne to Japan quotes on a cost-and-freight (C&F) basis, traders said.
TENDERS: India's Reliance Industries has sold 55,000 tonnes of naphtha to Petro-Diamond for mid-July loading from Sikka at premium levels of $4 to $5 a tonne to Middle East quotes on a free-on-board (FOB), traders said.
This was lower than a cargo it sold for second-half loading at premiums of mid-to-high single digit levels a tonne.
Mangalore Refinery and Petrochemicals Ltd (MRPL) sold 35,000 tonnes of naphtha for July 4-5 loading from New Mangalore to Vitol at premiums of about $5.50 a tonne.
Indian Oil Corp (IOC) has sold 35,000 tonnes of the fuel for July 5-7 loading from Chennai to Socar at premiums of about $14 to its own price formula on a FOB basis, the traders said.
GASOLINE EXTENDS LOSSES
Asia's gasoline crack fell for the third straight session to reach a one-week low of $5.22 a barrel as recent overproduction of the fuel continued to exert pressure.
"Higher gasoline output in various regions has seen gasoline balances lengthen, with stock levels remaining stubbornly high for this time of year," consultancy FGE said in a note on June 14.
But the note said demand was expected to be strong, supported by high Indonesian gasoline imports for stockpiling ahead of the Eid celebrations in July and the peak summer driving season in North Asia in July and August.
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