On Wednesday (September 1st), in September, Singapore naphtha was US$72.59/barrel, and the average price this month was US$73.00/barrel, down by US$0.07 from the August average price.
Singapore's naphtha valuation fell on Wednesday.
Asia's light distillates went down; the naphtha market was weak, and the market demand in Taiwan and Japan was less than expected. Traders indicated that Taiwanese CNPC did not import spot cargo in October due to sufficient supply of contracts; Formosa Petrochemical's spot demand may also be limited, and most products are expected to be obtained from its own refineries.
According to the Japan Petroleum Association, as of the week of August 28, Japan’s naphtha inventories increased by 163,383 kiloliters to 1,940,875 kiloliters.
South Korea's Hunan Chemical Company purchased spot naphtha which arrived in the first half of October at a price level lower than the previous purchase. "Taiwan" and Japan's less-than-expected demand, and the high exports from the Middle East and India have weighed on the market. Traders stated that South Korea's Hunan Chemical Company purchased 25,000 tons of oil from Nasu and 25,000 tons of naphtha cargo arrived in Daesan. The entire distillate naphtha delivered at Yosu was priced at US$0.50 per ton for Japan and arrived at Daesan. The open specification naphtha contract price is -0.50 USD per ton. The company’s last purchase of cargo in the first half of October was US$ 1.50 per ton.
More FOB India spot naphtha prices weighed on the market. Traders had expected lower exports from India, but Indian state-run refiners continued to offer. Indian Petroleum Corporation (IOC) solicited 30,000 tons of naphtha for shipment from Kandla on September 28-30. The tender was closed on September 6 and was valid until the next day. The company will export at least six to seven medium-sized tanker cargoes this month.
Hindustan Petroleum Co., Ltd. (HPCL) also sold 20,000 tons of cargo shipped from Mumbai on September 12-17. The tender will be closed on September 3 and will be valid on the same day. Bharat Petroleum Limited (BPCL) in India sold 30,000 tons of naphtha cargoes shipped from Mumbai on September 14-16. The tender will be closed on September 3 and will be valid until September 4.
Brokers reported that the benchmark Japanese public specification naphtha cargo, delivery price of cargo in the second half of October fell 1.50 US dollars to 670.50 US dollars / ton; in October / November first half of the difference is 0.50 US dollars / ton, in October The difference between November and November is $3.00/tonne.