Naphtha Price in India

Phenol price went up in India

Imported Data

Asian phenol/acetone prices were stable over the week leading up to Friday. While supply was increasing on the restart of plants in East China, turnarounds were also ongoing. Upstream, benzene was assessed up $13/mt on the week at $569/mt FOB Korea Friday, while propylene, another feedstock for phenol/acetone, was assessed unchanged over the same period at $925/mt FOB Korea Friday.

PHENOL: While spot supply for January and February cargoes was thin Friday, demand was also muted, sources said. Selling indications were heard at $1,050/mt CFR China, but a buyer said Friday that with domestic East China prices at Yuan 8,300-8,400/mt, approximately $970-$980/mt CFR China, buyers were unlikely to meet offer levels which they considered “high.” In the domestic market, however, sellers were optimistic about prices over the year. Phenol producers said that with the start up of multiple polycarbonate plants, demand for bisphenol-A was likely to firm, bringing with it demand for feedstock phenol. However, it was also possible that with growing supply of polycarbonate, prices would fall, resulting in narrowing spreads between polycarbonate and phenol. On the other hand, demand for phenol from other downstream segments such as cyclohexanone and caprolactam was thin, owing to narrow price spreads between feedstock and downstream products. CFR China phenol was assessed unchanged on the week at $1,025/mt, while CFR India phenol was assessed stable over the same period at $1,080/mt.

ACETONE: Losses on acetone production continued to be high, with domestic producers estimating around Yuan 300 lost with every metric ton of acetone produced. Acetone’s is typically used for producing methyl methacrylate, but demand from MMA producers have been weak, sources said. CFR China acetone was assessed unchanged week on week at $425/mt, while CFR India phenol was assessed stable over the same period at $465/mt.

Phenol prices on downtrend in India

Chemical Industry

Phenol prices went down Rs 3/kg to Rs 92-93/kg week on week at Kandla port on high inventory level and slow demand in the domestic market.
Booking level of phenol went down $30/mt to $1230-1240/mt week on week.
Prices expected more soften in coming days on bearish demand in major trading hubs of India.

International Market Updates:

CFR China phenol was assessed down $145/mt on the week at $1,175/mt Friday, above buy indications heard at below $1,000/mt, and at tradeable indications heard at $1,150-1,175/mt CFR China. End-users hailed the price drop as “overdue”, citing earlier price gains as having happened too quickly, and at too large a magnitude. Producers and end-users alike said Friday that prices of phenol is expected to continue falling moving forward, but market expectations differed on the impact of restocking activity for the Lunar New Year. A producer said Friday that CFR China prices would likely rebound closer to the festive season, while end-users said that prices would may stabilize below $1,000/mt CFR China. Despite the plunge in phenol, falls in feedstock benzene since October have left prices at a two-year low earlier this week. Market sources said that the price spread between benzene and phenol were still too high, and with benzene market long, it was likely that phenol prices would fall. Weakness in the downstream bisphenol-A has resulted in lower operating rates at BPA production plants, thereby affecting demand for phenol. Bisphenol-A is an intermediate material in the production of polycarbonate, which was heard at levels of $1,800-1,900/mt CFR China. “The price spread between polycarbonate and phenol is just $600-700/mt,” an end-user said Friday, adding that the narrow price spreads made it difficult for production plants to breakeven. CFR India phenol was assessed down $100/mt on the week at $1,240/mt, where a deal was heard concluded.

Aromatics Naphtha | Daily Report | 23rd August 2018

Chemical Industry

The Asian naphtha complex failed to receive much support Wednesday amid the excess surplus in the region, and subdued demand in the North. Apart from the tepid demand on paraffinic naphtha front, the requirement for heavy full range naphtha slowed substantially, contributing to the pullback on any support to the fundamentals, a market source said.

Competitive prices of regional condensates and light crude oil had drawn away splitter users’ earlier attraction to heavy full range naphtha. Such weakness was reflected in the paper market, as the September/October Mean Of Platts Japan naphtha swap time spread fell 25 cents/mt to plus $2/mt Monday.

The front-month time spread touched the same low on February 9. At 0300 GMT Wednesday, the spread was pegged at the same level at plus $2/mt. Looking West, arbitrage opportunities to send barrels to the East appeared grim as Asian naphtha cash differentials had weakened.

While the September-arrival naphtha arbitrage volume could not be discerned. Market sources said the combined volume in August and September would determine whether the Asian naphtha complex could reverse the oversupply situation.

“East [is trying] to shut the arb gate. Until East could digest the supply overhang, [bearish] sentiments will still prevail,” a naphtha trader said.

Separately, state-owned Indian Oil Corp. is offering 35,000 mt of naphtha, ex-Chennai, for loading over September 17-19, market sources said. The tender was heard to be expiring August 23, with next-day validity.

Privately-owned Reliance Industries was heard to have sold a 55,000 mt minimum 70% paraffin naphtha clip, to a Japanese buyer, for September 12-13 loading from Sikka, one market source said. The company declined to comment on details of the trade.

Meanwhile, Indonesia imported 171,877 mt of naphtha in June, down 29.75% month on month but up 1.71% year on year, detailed figures from Statistics Indonesia showed last week. For June, Indonesia has also turned its focus back to lower octane gasoline imports– primarily 88 RON grade — from the higher priced 92 RON and 95 RON gasoline grades.

Indonesia has capped monthly 88 RON gasoline imports at below 500,000 mt over last December to April this year but boosted imports in May to 596,878 mt. Indonesia imported 583,096 mt of low octane gasoline in June, while imports of gasoline with an octane number between 90 RON and 97 RON fell sharply from 688,735 mt in May to 581,160 mt.

“Due to the higher crude and gasoline prices, they are more focused on the 88 RON grade,” a market source with knowledge of Pertamina’s recent fuel purchase said.