Asia's naphtha market remained weak for a second consecutive session on Wednesday, after two South Korean producers announced their restructuring plans, traders said.
The crack was up by about $2 to $95.23 per metric ton over Brent crude after falling by about $10 a day earlier. The backwardation between first-half January and first-half February naphtha prices was steady at $7 a ton.
South Korea's HD Hyundai and Lotte Chemical have submitted a plan to the industry ministry on restructuring their petrochemical businesses, the companies said in separate regulatory filings.
Under the plan, Lotte will split off its business in Daesan and merge it with HD Hyundai Chemical.
A Singapore-based trader said one of the Daesan crackers will also be shut following the merger and that is weighing on market sentiment.
In the gasoline market, the crack spiked to $15.79 per barrel over Brent crude on Wednesday from $13.81 in the previous session.
Nigeria's Dangote said it plans to shut its gasoline producing residue fluid catalytic cracker (RFCC) for five weeks in December-January.
INVENTORIES
Light distillate stocks fell by 934,000 barrels to 6.291 million barrels in the week to November 24, S&P Global Commodity Insights data showed.
NEWS
- Oil prices were steady on Wednesday after sliding to a one-month low in the previous session as investors assessed prospects of oversupply and talks over a Russia-Ukraine peace deal.
- Serbia is preparing an amendment to the draft budget law that would enable it to take ownership of its Russian-owned, U.S.-sanctioned oil refiner NIS, the parliament speaker said.
SINGAPORE CASH DEALS
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PRICES
CASH
ASIA CLOSE
Change
Prev Close
RIC
OSN Naphtha CFR Japan M1 ($/mt)
562.75
-3.00
565.75
(NAF-1H-TYO)
OSN Naphtha CFR Japan M2 ($/mt)
555.75
-3.00
558.75
(NAF-2H-TYO)
OSN Naphtha Diff ($/mt)
7.00
0.00
7.00
(NAF-TYO-DIF)
Naphtha Netback FOB Sing ($/bbl)
60.53
-0.33
60.86
(NAF-SIN)
Naphtha-Brent Crack ($/mt)
95.43
2.47
92.95
(NAF-SIN-CRK)
Gasoline 97 ($/bbl)
81.27
0.25
81.02
(GL97-SIN)
Gasoline 95 ($/bbl)
80.96
1.25
79.71
(GL95-SIN)
Gasoline 92 ($/bbl)
78.10
1.25
76.85
(GL92-SIN)
Gasoline crack ($/bbl)
15.79
1.98
13.81
(GL92-SIN-CRK)
For a list of derivatives prices, including margins, please double click the RICs below.
Brent M1
(BRENTSGMc1)
Naphtha CFR Japan M1
(NACFRJPSWMc1)
Naphtha CFR Japan M1/M2
(NACFRJPSDMc1)
Naphtha CFR Japan M2
(NACFRJPSWMc2)
Naphtha Japan-Sing Netback M1
(NAPTC4SPDMc1)
Naphtha Japan-Sing Netback M2
(NAPTC4SPDMc2)
Naphtha FOB Sing M1
(NAFOBSGSWMc1)
Naphtha FOB Sing M1/M2
(NAFOBSGSDMc1)
Naphtha FOB Sing M2
(NAFOBSGSWMc2)
Naphtha Cracks M1
(NACFRJPCKMc1)
East-West Naphtha M1
(NAPJPEWMc1)
East-West Naphtha M2
(NAPJPEWMc2)
NEW Naphtha M1
(NAPCNWEAMc1)
NEW Naphtha M1/M2
(NAPCNWEASMc1)
NEW Naphtha M2
(NAPCNWEAMc2)
Crack NEW Naphtha-Brent M1
(NAPCNWEACMc1)
Crack NEW Naphtha-Brent M2
(NAPCNWEACMc2)
*Sing refers to Singapore