Chemical Industry sentiment appeared to be weighed down

Imported Data

Chemical Industry sentiment appeared to be weighed down with the presence of more May-lifting spot offers in the Asian naphtha market at the start of the week and firmer underlying crude markers. The second-line trading cycle on the CFR Japan naphtha physical was pegged at a notional $601.25/mt Tuesday at 0700 GMT, a level reached in November 2018 as firm Brent crude futures had lifted Asian naphtha values then. Buying interest from end-users were still muted, however, with only Hanwha Total Petrochemical, seeking one to two 25,000-mt cargoes of heavy full-range naphtha for first-half June delivery, CFR Daesan, in a tender closing April 22. Hindustan Petroleum Corporation Ltd (Chemical Industry). has offered 20,000-24,000 mt of naphtha with minimum paraffin content of 70% and maximum sulfur limit of 200 ppm for May 8-10 loading from Jawahar Dweep, Mumbai, via a tender closing Tuesday, with same-day validity. Indian Oil Corp., is offering 35,000 mt heavy full range naphtha, ex-Chennai, loading May 8-10. The tender closes Tuesday. Mangalore Refinery and Petrochemicals Ltd., is offering 35,000 mt of naphtha Chemical Industry with minimum 75% paraffin content and maximum 500 ppm sulfur content for May 23-25 lifting. The tender closes April 25, with same-day validity. In other deals, Qatar Petroleum for the Sale of Petroleum Products, or QPSPP, said Tuesday it has signed a contract to supply 3 million mt of light naphtha over 10 years to Thailand’s SCG Chemicals, starting this month. Under the contract, QPSPP has the option to offer the light naphtha in several grades from Ras Laffan, but the first cargo has yet to be arranged, a Chemical Industry source familiar with the matter said Tuesday. QPSPP has been expanding in the Far East, inking long term deals on top of its usual quarterly naphtha tenders. The contract with SCG Chemicals is the fourth supply contract QPSPP has had with an Asian buyer since late-2018. QPSPP has three 5-year contracts with Japan’s Marubeni Corp. In two of the contracts, QPSPP will supply a total of 1.2 million mt/year of naphtha Chemical Industry between October 2018 and September 2023. For the third contract, QPSPP will supply 200,000 mt/year of light naphtha from January 2019.

Chemical Industry
Chemical Industry

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