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Products: May 6-10: Trades of heavy full range naphtha for second-half Jun arrival wave

2019/05/13 07:00

GASOLINE

The differential for SR-size cargoes of 91RON gasoline on an FOB South Korea basis was up on increasing demand in Japan. In the full-fledged demand season, several Japanese trading houses were reportedly making moves to procure gasoline cargoes in South Korea. A market source said that a cargo from the country could be traded at a premium of $2.00/bbl or above to Singapore quotations on an FOB basis. After the Golden Week holidays in Japan, some market players were said to be buying gasoline cargoes to build up inventories that had been reduced during the holidays.

 

NAPHTHA

In the Northeast Asian spot market, trades of heavy full range naphtha for second-half Jun arrival were active. SK Energy and GS Caltex in South Korea seemed to have procured at a premium of $5.5/mt and in the low $6’s/mt to Japan quotations, respectively. As the US terminated the exemption of economic sanctions against Iran, supply of Iranian condensate was expected to be disrupted, and demand for heavy full range naphtha as the alternative of Iranian products was extending in Northeast Asia.

 

MIDDLE DISTILLATES

The differential for MR-size cargoes of 0.001% sulfur gasoil on an FOB South Korea basis moved up in line with increasing differentials for 0.05% sulfur gasoil cargoes. Although talks on cargoes loading in June were ongoing, no fresh offers and bids were heard. However, a market source said that the differentials for 0.001% sulfur gasoil cargoes went up after a 0.05% sulfur gasoil cargo loading in June from South Korea was traded at a high differential. It was pointed out that a 0.001% sulfur gasoil cargo from South Korea could be traded at a discount of 60-70cts/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 hovered. In South Korea and Singapore, supply of arbitrage cargoes from outside the regions was abundant and stock levels stood high. The supply volume of fuel oil from Europe to Asia in May was expected to be about 5.5 mil mt, up from around 5 mil mt in April. On the other hand, the volume of supply from Middle East to Asia in April decreased by over 470,000 mt compared to the previous month.

 

Asia-products(Japanese) report sample

Products (English) report sample

 

 

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