30 July, 2018
A refiner in China sold an MR-size cargo of 92RON gasoline loading from South China on Aug 22-23. The price was said to be slightly lower than the price for the 92RON gasoline cargo loading on Aug 20-21 that the company had earlier sold at a premium of 50cts/bbl to Singapore quotations.
Sources expected naphtha demand in South Korea to decline from September or after due to planned maintenance by petrochemical companies such as Lotte Chemical, YNCC and LG Chem. There were views that an arbitrage cargo volume to be brought over to Asia from outside the region such as Europe and the US would fall to 1.30-mil mt in August from 1.58-mil mt in July.
Purchases of jet fuel from Japan were ongoing. A refiner in the country was reportedly looking for a cargo loading in September. Another refiner has already bought an MR-size cargo loading at the end of August from South Korea. The cargo was said to be loaded in Ulsan. Refiners in Japan started imports of jet oil as they need to build up inventories of kerosene toward the winter demand season. Those movements could become the bullish factor for the jet fuel loading in September.
FUEL OILKorea East West Power Co (EWP) bought 40,000mt of 0.3% sulfur fuel oil to be delivered in Ulsan on Aug 6-10 at a premium of slightly lower than $70.00/mt to Singapore quotations. It was reported that a 0.3% sulfur fuel oil cargo for delivery in Japan could be traded at around the same differential as EWP’s cargo. EWP issued another buy tender for 40,000mt of 0.3% sulfur fuel oil to be delivered in Ulsan on Aug 13-17. The tender was scheduled to close on Aug 2.