Asia’s naphtha refining profit margin jumped on Wednesday after underlying prices fell in tandem with weakness in crude oil benchmarks.

The crack rose to $92.18 per metric ton over Brent crude, compared with $82.30 a day earlier and the backwardation between first-half October and first-half November cargo widened sharply to $7 a ton.

Traders said South Korean steam crackers in Daesan like LG Chem and Hyundai will undergo turnaround October onwards for about 45 days.

The gasoline crack, on the other hand, eased to $9.89 per barrel over Brent crude on Wednesday, although premiums remained firm.

In tenders, Indian MRPL was heard to have sold 35,000 tons of gasoline for September 7-8 delivery at a premium of about $3 per barrel to MOPS and 40,000 tons of 95-octane grade of the fuel for September 14-15 delivery at a premium of around $5 per barrel, market sources said.

NEWS
– U.S. President Donald Trump’s trade wars are nudging the global plastics industry toward a painful but necessary restructuring to address acute overcapacity that has kept the industry’s profits in a prolonged slump.
– Small and stand-alone naphtha crackers are likely to shut while some plants could merge as part of an overhaul of South Korea’s oversupplied petrochemical sector, analysts said, which will cut naphtha demand at the world’s largest importer of the fuel.

SINGAPORE CASH DEALS
One naphtha and one gasoline deal.
Source: Reuters