SINGAPORE, Feb 23 (Reuters) - Asia's naphtha price
remained at a 10-month high on firm crude on Thursday, but that
was squeezing margins which eased to a three-session low.
However, bullish sentiment persisted on tight supplies and
firm demand, causing the premiums for first-half April and
first-half May to stay at a 26-month high.
Buyers continued to fork out sky-high premiums to get their
hands on cargoes.
Honam Petrochemical bought three cargoes at premiums of
$16.00-$18.00 a tonne to Japan spot quotes on a cost-and-freight
(C&F) basis, based on a 45-day price formula for open-spec
grade.
This reflected a 45-50 percent hike in premiums compared
with what Honam had paid on Feb. 13 for two first-half April
cargoes.
Malaysia's Titan bought a 30,000-tonne full-range cargo for
first-half April arrival at premiums of $20.00 a tonne to Japan
quotes on a C&F basis, pegged to a 30-day price formula.
This was almost double what it had paid previously for a
second-half March cargo.
Taiwan's Formosa Petrochemical Corp paid premiums ranging
from $14.00-$20.00 a tonne for 100,000 tonnes of open-spec
naphtha for first-half April arrival.
But traders said the $14 a tonne premium could be due a
different price/delivery formula arrangement and that $20.00 a
tonne would be closer to Taiwan's market rate at about $22.00 a
tonne.
Despite a fresh wave of Western exports to Asia, traders
said most of the volumes are unlikely to arrive by first-half
April.
"Cargoes are still lacking while demand for first-half April
cargoes is still there. Just look at what the buyers are paying
today," said a trader.
An undisclosed buyer paid $40.00-$45.00 a tonne above Middle
East quotes on a free-on-board (FOB) basis for 30,000-35,000
tonnes of open-spec naphtha to India's Essar Oil, reflecting a
spike of more than 45 percent in premiums.
Gasoline cracks fell to their lowest in about a month with
supplies in Singapore reaching a two-week high at 11.254 million
barrels in the week ended Feb. 22, official data showed.
The light distillates inventories in Singapore comprise
mainly gasoline.
India's BPCL 17,000 tonnes of reformate in two separate
tenders. One of the tenders, which closes on Feb. 27 is for
7,000 tonnes for mid-March arrival at Haldia.
The other 10,000 tonnes are to be delivered to Mumbai on
April 7-12. The tender closes on March 2.
* SWAPS OUTRIGHTS (CFR Japan): March and April swaps fell
$3.25 and $2.25 respectively to $1,048.25 and $1,037.75 a tonne.
* EAST-WEST SPREADS (The differential between
CFR Japan swaps and Northwest Europe swaps): Asia's March swaps
were $7.75 higher than Northwest European swaps compared with
$8.25 higher in the previous session.
* SWAPS CRACKS : Discounts on crack spreads
for April widened $1.46 to $7.63 a barrel to Brent crude.
* JAPAN OPEN-SPEC NAPHTHA
front-month first-half April gained $1.00 to $1,079 a tonne, the
highest since April 29, 2011 at $1,106.50 a tonne.
* BACKWARDATION/CONTANGO: The intermonth premiums between
first-half April and first-half May widened to $23.00 a tonne,
highest since Dec. 23, 2009 at $25.00 a tonne.
* CRACK SPREAD
the profits or losses of refining Brent crude into naphtha --
fell $8.38 to $156.65 a tonne premium.
* NAPHTHA CASH DEALS: None.
* REFORMING MARGINS: Gasoline's premium to naphtha
barrel.
* GASOLINE CRACKS
obtained from refining Brent crude into gasoline -- fell $1.04
to $8.52 a barrel, lowest since Jan. 17 at $8.20 a barrel.
* GASOLINE CASH TRADES: One deal done, with Total having
sold a 92-octane cargo for March 14-18 loading to Vitol at
$131.50 a barrel.
PRODUCT Price Prev Change
APR12 NAPHTHA
SPOT NAPHTHA NETBACK
MAR NAPHTHA SWAPS
APR NAPHTHA SWAPS
SPOT GASOLINE 97 UNL
SPOT GASOLINE 95 UNL
SPOT GASOLINE 92 UNL
SPOT 92RON/NAF
(Reporting by Seng Li Peng; Editing by Alison Birrane)
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