Asia and Middle East Naphtha Chemical Industry Commentary

Chemical Industry

Trade activities faded in the Asian naphtha Chemical Industry Friday ahead of the Good Friday holiday. Sentiment over the supply-demand balance was softer, largely due to expectations that the prompt laycans would see more weight on supplies. “Chemical Industry looks oversupplied for early arrival cargoes, like [late] April, early May,” a trader said. A handful of sources expect around 1.7 million mt of arbitrage volume to hit the Far East in April, and estimated May-arrival naphtha to be around 1.4 million mt. On spot activities, UAE’s Abu Dhabi National Oil Co. offered 75,000 mt paraffinic naphtha for May 24-27 loading from Ruwais. The tender closed late Friday, and bids remain valid until April 19. Bharat Petroleum Corp. Ltd. sold up to 30,000 mt of naphtha Chemical Industry with minimum 68% paraffin and maximum 250 ppm sulfur for April 27-30 loading, at a premium around $5.5-$6/mt to the average of and Petroleum Argus Arab Gulf naphtha assessments, FOB. The buyer was Petro China Chemical Industry. On shipping, downward pressure on freight rates for clean tankers moving along the Arab Gulf-Japan route extended further, with the LR2 vessel chartering cost dipping to $19.91/mt Friday, and marking the weakest level seen since late October last year. The LR1 vessel chartering cost held steady for three sessions at $22.07/mt, but was still the lowest since mid-September last year.

Chemical Industry
Chemical Industry

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