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Products: Sep 2-6: 0.001%S gasoil prices rise on expectations that demand would increase

2019/09/09 07:00


The differential for MR-size cargoes of 92RON gasoline on an FOB China basis was unchanged. Talks on cargoes loading in October gradually started. A refiner in China issued a sell tender for an MR-size cargo of 92RON gasoline loading from South China. A refiner in South Korea was scheduled to have planned maintenance activities on its Ulsan refinery in October, so that spot supply seemed to be limited in the month. On the other hand, State-owned Pertamina was keeping buying for 88RON gasoline for mid-September.   



In the Northeast Asia spot market, Hanwha Total, YNCC, Korea Petrochemical Industry Co (KPIC), and Lotte Chemical procured cargoes for second-half October delivery. The price levels were at slight discount to flat to Japan quotations on a CFR Japan equivalence. Meanwhile, an Asian market viewer said that CFR Japan prices for open-spec naphtha for would be rebounding from second-half October through November. On the back of that, in addition to narrowing price gap between naphtha and liquefied petroleum gas (LPG) prices, supply from the US and Europe would be going down due to turnaround season of refinery in the regions. 



The differential for MR-size cargoes of gasoil on an FOB Northeast Asia basis was up on expectations that demand would increase. For 0.05%S sulfur gasoil, demand of gasoil for fishery boasts was possibly going to increase as the fish ban would be lifted along the coast of mainland China in September. Also, it was possible that demand for MGO with sulfur content of less than 0.5% would increase as the sulfur restriction for bunker fuel would be strengthened to 0.5% from 2020 led by the International Maritime Organization.



The differential for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis stayed flat. No fresh deals for 0.5% sulfur fuel oil cargoes were reported in the market. However, a refiner in South Korea speculated that the differential could be at a premium of around $70.00/mt to the quotations based on the premium of $90/mt to the quotations for a 0.3% sulfur fuel oil cargo on an FOB South Korea basis that had been earlier reported. In the meantime, inquiries for fuel oil as blending stock were increasing. Last weekend, a cargo of bottomed oil from a residual desulfurization unit from South Korea was reportedly traded at a premium in the range of $115.00-120.00/mt to Singapore quotations (180cst) on an FOB basis.


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