SINGAPORE: Asia's naphtha crack extended losses for the second day on Tuesday to reach a four-session low of $69.10 a tonne but spot prices in South Korea have flipped to premiums after they turned negative recently.
- South Korea's Hanwha Total and YNCC were seeking naphtha for first-half April delivery.
- Traders said YNCC paid a premium of about $1.50 a tonne to Japan quotes on a cost-and-freight (C&F) basis for the fuel.
- This contrasted with the discount level YNCC had paid on Feb. 9 for naphtha scheduled for second-half March delivery.
- That was the first time spot prices turned negative in South Korea since August.
- Traders said they were expecting tighter naphtha supplies April versus March but it was too early to determine the volumes of cargoes scheduled for April arrival in Asia from the West including Europe and the Mediterranean. Cargoes arriving this month and those that arrived in January were above 2017's monthly average of about 1.2 million tonnes.
GASOLINE: Asia's gasoline crack in contrast to naphtha was at a five-session high of $7.98 a barrel.
- Petrol shortages were seen in Nigeria, which has provided some support to the European market as the former draws on the latter's cargoes.
CASH DEALS: One gasoline deal where Vitol bought a 92-octane grade cargo from Gunvor for March 14-18 loading at $73.30 a barrel.
- There was also one deal on naphtha, of which BP sold to Trafigura a first-half May cargo at $556 a tonne.
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