Asia’s naphtha refining profit margin was steady on Monday amid tepid trade, while demand sentiment remained subdued in the absence of any deals at the window so far this month.

The crack traded at $21.40 a metric ton over Brent crude and first-half October naphtha prices rose by $13 to $662.50 per ton.

Although participants expect markets to find support in margins as Indian and Japanese refiners go for shutdowns in the next couple of months, the upside could be limited due to recent sell tenders, analysts and traders said.

Meanwhile, Russia is shipping a rare naphtha cargo via the North Sea Route (NSR) as Moscow seeks to increase supplies using the route to major trade partner China, cutting its way through European waters, traders said and Refinitiv data showed.

Vessel SCF Irtysh with 37,000 tonnes of naphtha onboard was loaded at Ust-Luga port on Aug. 5 for delivery to China. It is the first such loading since at least the late 2000s, according to two traders.

In the gasoline patch, delayed quota announcement from China is supporting margins in an already tight market. The crack continued to trade in the range of $16-$17 per barrel over Brent crude on Monday.

NEWS

– China’s crude oil imports from top exporter Saudi Arabia are expected to remain depressed through the third quarter, analysts said, after its customs office reported inbound shipments from the kingdom fell to their lowest in 13 months in July.

– China’s liquefied natural (LNG) gas importers are starting up or expanding trading desks in London and Singapore to better manage their growing and diversified supply portfolios in an increasingly volatile global market.
Source: Reuters (Reporting by Mohi Narayan; Editing by Sonia Cheema)