SINGAPORE, Feb 10 (Reuters) - Asia's gasoline market outlooks remained murky given the conflicting paper price structures globally, though some price support remained from western markets amid a slew of window trading activity.
The east-west arbitrage spreads for Asian exports were open, be it to the U.S. or Europe, Reuters calculations showed.
Refining margins for the motor fuel GL92-SIN-CRK kicked off the week stronger at nearly $10 a barrel, clawing back last week's losses.
However, Asian demand has been slightly curtailed given the slower-than-expected spot buying from some regions for March and April, one trade source said.
Meanwhile, some talks of Indonesia's state-owned refiner ramping up gasoline output these two months until March emerged.
Meanwhile, some traders were expecting March gasoline exports to be similar to February at around 400,000 tonnes, against a backdrop of squeezed sales margins now given the slight tightness in local supplies.
On the tenders front, Taiwan's CPC Corp was offering some reformate and alkylate spot cargoes for March shipment via a tender that closes tomorrow.
Asian naphtha markets were slightly quieter, though some buying interest did surface. More buyers are going to start their first-half April procurement activities in the next few days, including Chinese buyers.
South Korea's YNCC sought for 25,000 metric tons of first-half April delivery naphtha via a sales tender that closes today with same-day validity.
Traders, however, are expecting China's buying activity to be opportunistic and price driven, given that domestic cargoes could be readily available at lower prices.
Production margins for the petrochemical feedstock NAF-SIN-CRK closed Monday's trading session at $112 per ton, recording slight gains from the previous trading session.
Despite the shaky buying interest, support still came from slightly tighter supply expectations from the west in the near-term amid a closed arbitrage export window to Asia.
SINGAPORE CASH DEALS O/AS
- Two naphtha deals, four gasoline deals.
NEWS
- South Korean petrochemical companies LG Chem and Lotte Chemical both made losses in 2024, dragged down by oversupply which is set to persist this year, while trade turmoil has dampened the global economic outlook, company executives said this week.
- Malaysia's state energy firm Petronas will reduce its workforce to ensure its long-term survival amid increasing challenges in the global operating environment, local media reported on Friday, citing the Petronas chief.
- Oil prices ticked higher on Monday even as investors weighed U.S. President Donald Trump's latest tariff threat, this time on all steel and aluminium imports, which could dampen global economic growth and energy demand. O/R
REFINERY NEWS REF/OUT
- Lyondell Basell Industries LYB.N completed the final shutdown of its 263,776 barrel-per-day Houston refinery, people familiar with plant operations said on Friday.
- Nigeria's Dangote Oil refinery, Africa's largest, could begin operating at full capacity in 30 days, the head of the refinery said on Monday.
PRICES
CASH | ASIA CLOSE | Change | Prev Close | RIC |
OSN Naphtha CFR Japan M1 ($/mt) | 675.75 | 3.00 | 672.75 | NAF-1H-TYO |
OSN Naphtha CFR Japan M2 ($/mt) | 669.00 | 3.00 | 666.00 | NAF-2H-TYO |
OSN Naphtha Diff ($/mt) | 6.75 | 0.00 | 6.75 | NAF-TYO-DIF |
Naphtha Netback FOB Sing ($/bbl) | 73.08 | 0.33 | 72.75 | NAF-SIN |
Naphtha-Brent Crack ($/mt) | 111.60 | 1.43 | 110.18 | NAF-SIN-CRK |
Gasoline 97 ($/bbl) | 86.75 | 1.15 | 85.60 | GL97-SIN |
Gasoline 95 ($/bbl) | 86.35 | 0.85 | 85.50 | GL95-SIN |
Gasoline 92 ($/bbl) | 85.15 | 1.35 | 83.80 | GL92-SIN |
Gasoline crack ($/bbl) | 9.93 | 1.14 | 8.79 | GL92-SIN-CRK |
For a list of derivatives prices, including margins, please double click the RICs below. | ||||
Brent M1 | BRENTSGMc1 | |||
Naphtha CFR Japan M1 | NACFRJPSWMc1 | |||
Naphtha CFR Japan M1/M2 | NACFRJPSDMc1 | |||
Naphtha CFR Japan M2 | NACFRJPSWMc2 | |||
Naphtha Japan-Sing Netback M1 | NAPTC4SPDMc1 | |||
Naphtha Japan-Sing Netback M2 | NAPTC4SPDMc2 | |||
Naphtha FOB Sing M1 | NAFOBSGSWMc1 | |||
Naphtha FOB Sing M1/M2 | NAFOBSGSDMc1 | |||
Naphtha FOB Sing M2 | NAFOBSGSWMc2 | |||
Naphtha Cracks M1 | NACFRJPCKMc1 | |||
East-West Naphtha M1 | NAPJPEWMc1 | |||
East-West Naphtha M2 | NAPJPEWMc2 | |||
NWE Naphtha M1 | NAPCNWEAMc1 | |||
NWE Naphtha M1/M2 | NAPCNWEASMc1 | |||
NWE Naphtha M2 | NAPCNWEAMc2 | |||
Crack NWE Naphtha-Brent M1 | NAPCNWEACMc1 | |||
Crack NWE Naphtha-Brent M2 | NAPCNWEACMc2 | |||
*Sing refers to Singapore |
(Reporting by Trixie Yap; Editing by Devika Syamnath)
((trixie.yap@thomsonreuters.com;))
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