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Products: Jan 7-11: inquiries for 0.05%S gasoil in Asia sluggish

2019/01/14 07:00

GASOLINE

The Chinese government granted the first export quota of oil products in 2019 to state-owned oil companies. For gasoline, a combined volume of 5.25 mil mt was given; 5.19 mil mt for general trade and 60,000mt for processing trade. The volume of its first quota in 2018 was 6.63 mil mt; 6.55 mil mt for general trade and 80,000mt for processing trade.

 

NAPHTHA

Turnaround season for naphtha crackers would start from March and April. In March, Idemitsu Kosan was scheduled to shut down a cracker at its Chiba refinery, while LG Chem in South Korea was also scheduled to shut down a cracker at its Daesan plant. In April, Hanwha Total, KPIC, and some other end-users were also planning to conduct maintenance activities at their plant. Whereas demand for naphtha was expected to decline due to turnaround, some pointed out that supply was also likely to decline as some refineries were also scheduled to be shut down for maintenance activities and supply of naphtha would be reduced.

 

MIDDLE DISTILLATES

Inquires for 0.05% sulfur gasoil to be brought to vessels off the coast of Taiwan seemed to be weak. Inventories around Taiwan were said to stay high. In the meantime, a refiner in South Korea was talking on a 0.05% sulfur gasoil cargo loading in February. However, due to lower than expected bids from buyers, the seller seemed to have a hard time selling it. A seller even pointed out that the deal could take place at a discount of narrower than $2.50/bbl to Singapore quotations on an FOB basis.

 

FUEL OIL

The differential for MR-size cargoes of 3.5% sulfur fuel oil on an FOB South Korea basis weakened. Although no deals were heard in the market, a refiner in South Korea pointed out that deals could take place at a discount of narrower than $3.00/mt to the quotations on an FOB basis.

 

Asia-products(Japanese) report sample

Products (English) report sample

 

 

Tokyo : Products Team  Yoshiya Futakawa  +81-3-3552-2411
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