GASOLINE

The differential for MR-size cargoes of 92RON gasoline on an FOB Northeast Asia basis was unchanged. No fresh bids and offers for cargoes loading in October were reported. On the other hand, Indonesia's state-owned Pertamina closed a buy tender for four 200,000bbl cargoes of 92RON gasoline for delivery in October on Wednesday. The price validity date was set on Friday. As reported, the Indonesian government was easing lockdown for COVID-19 as the number of cases for the virus was declining. Pertamina was increasing procurements of spot cargoes.

NAPHTHA

In the Northeast Asia spot market, South Korean end-users had bought several cargoes last week. Hanwha Total was informed to have procured five cargoes arriving in October to first-half November in the range of a single digit discount to a mid-single digit premium to Japan quotations depending on grades. Also, LG Chem was said to have purchased paraffinic naphtha with a paraffine content at 75% at a premium of $5-7/mt to the same quotations. In the region, ethylene prices were slightly falling back. In China, demand of ethylene was shrinking along with lowering productions of the derivatives in response to regulations for environment. Further, nosedives in stock prices starting from the country pulled down prices for crude oil which was also a risk asset like stocks, so that prices for oil products were under downward pressure as well. A market player viewed that prices for naphtha which were easy to track oil prices as feedstock for ethylene would possibly soften.

MIDDLE DISTILLATES

The differentials for MR-size cargoes of 0.05% sulfur gasoil on an FOB Northeast Asia basis were unchanged. However, market sentiment stayed firm on strong buying interests from traders. They seemed to be actively looking for cargoes on expectations that demand would pick up in line with a recovery in economy amid ongoing vaccinations for COVID-19. In Vietnam, one of the outlets for 0.05% sulfur gasoil in Asia, it was expected that lockdown for the virus would be lifted in the near future.

FUEL OIL

The differential for MR-size cargoes of 0.5% sulfur fuel oil on an FOB South Korea basis unchanged. In China, the export volumes of fuel oil for this year so far were declining to around 10 million mt compared to the same period last year, while the independent refineries were increasing imports of 0.5 sulfur fuel oil as feedstock of VLSFO. On the other hand, demand for VLSFO to bunker in the country was shifting to Singapore where VLSFO prices remained lower. In Taiwan, Formosa Petrochemical Co (FPCC) was not planning any sell tenders for October loading for now, but they were going to sell one cargo each of high sulfur fuel oil and pyrolysis fuel oil.