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Products: Apr 1-5: 0.05% sulfur gasoil declines in line with weakening demand and 0.001% gasoil prices

2019/04/08 07:00


The differential for MR-size cargoes of 93RON gasoline for Northeast Asia loading stayed intact. Sources expected spot supply for May loading also to be tight. In Northeast Asia, China would likely reduce export volumes. The Chinese government reduced an export quota for gasoline for the first time this year to 815,000mt. In the meantime, Formosa Petrochemical Co (FPCC) was said to have sold 250,000bbl of 92RON gasoline (0.005%S) for May 20-24 loading. The specification of the cargo was nearly for Philippines.



In the Northeast Asia market, it was informed that LG Chem in South Korea purchased a cargo for second-half May arrival at a premium in the $4’s/mt to Japan quotations. The company earlier procured a cargo for first-half May arrival at a premium in the $7’s/mt to the quotations. Naphtha crackers in South Korea were rushing into turnaround, and prices for second-half May arrival were seen to be softening due to declining naphtha demand.



The differential for MR-size cargoes of 0.05% sulfur gasoil for Northeast Asia loading declined in line with weakening demand. For Taiwan, a major area of 0.05% gasoil being delivered, sources saw a lack of momentum in talks over offshore trades around the country. Selling pressure mounted also along with weak 0.001% gasoil prices. Meanwhile, one South Korean oil company was about to sell a 0.05% gasoil cargo for May loading but there was no deal information. Prices on an FOB South Korea basis were dragged down by prices on an FOB Taiwan basis.



The differential for MR-size cargoes of 0.3% sulfur fuel oil on a CFR Japan basis stayed at high prices on the back of firm demand. Taiwan’s CPC bought 40,000mt of 0.3% fuel oil for May delivery via a tender closed on Wednesday. There were views that a premium to Singapore quotations in the awarded price this time was higher than that for an April delivery cargo taken via the previous tender. In addition to that, Korea Southern Power Co was conducting a term buy tender for a combined volume of 49,000kl of fuel oil to be delivered from April to September.


Asia-products(Japanese) report sample

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