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Products: Feb 4-8:Deal prices for second-half March arrival rises by last-minute demand before Chinese New Year holidays

2019/02/11 07:00


The differential for SR-size cargoes of 91RON gasoline on an FOB South Korea basis was unchanged. Import costs of gasoline from South Korea to Japan were still lower than Japanese domestic prices, so that the import window to Japan was open. More refineries were using light crude oil these days, and supply of gasoline was getting ample. On the other hand, procurement of gasoline to be brought into Southeast Asia including Indonesia was inactive.



In the Northeast Asian spot market, deal prices for second-half March arrival increased to a premium of low $10’s/mt to Japan quotations. For the reasons of sudden increase in the price, it was said that volumes of arbitrage cargoes from regions outside of Asia were less recently and supply and demand fundamentals for March arrival were tight. In addition, demand for cargoes increased before the Lunar New Year holidays in China.



The differentials for MR-size cargoes of 0.001% sulfur gasoil on an FOB South Korea basis and on an FOB Japan basis were unchanged. Regarding the tradable prices for cargoes loading in March, market sources said that they were higher than prices for cargoes loading in February. Due to the contango paper swaps market, buying interest of traders seemed to be strengthening. The economy in China was slowing down so that oil companies in China were possibly going to increase their exports. In the meantime, refiners in Japan were said to continue spot sales of gasoil to tighten the domestic market.



The differential for MR-size cargoes of 0.3% sulfur fuel oil on a CFR Japan basis was unchanged. Due to the Luna New Year's holidays in the wide range in Asia, markets in major countries in the region were almost closed and discussions were lull. Meanwhile, a trader pointed out that some buyers were possibly going to issue buy tenders for Feb-Mar delivery cargoes next week onwards after the holidays. Amid no new demand for fuel oil cargoes for power generation either in Japan, combined cycle power generators were expected to prevail in the near future, and the use of liquified natural gas(LNG) instead of fuel oil was ongoing. Fuel oil demand for power generations would be perceived to decrease further.


Asia-products(Japanese) report sample

Products (English) report sample



Tokyo : Products Team  Yasuaki Yokoi  +81-3-3552-2411
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