2 April, 2018
For cargoes loading in May, talks were expected to start from this week. In Taiwan, Formosa Petrochemicals Co (FPCC) was scheduled to skip spot sales loading in May as supply to term lifters was increasing in the month. Export availability for loading in May by CPC Corp seemed to be limited due to some troubles of secondary units at its refineries. The 40,000b/d reformer at its 350,000b/d Dalin refinery that had been hit by a fire and some employees got injured were still shut down. Although the unit had been repaired, the Taiwanese government had yet to give the green light to restart the unit to CPC.
Abu Dhabi National Oil Corp (ADNOC) of the United Arab Emirates (UAE) signed a three-year term contract with Idemitsu Kosan KK and SCG Chemicals in Thailand. ADNOC is expected to supply a combined amount of up to 1.50-mil of naphtha per year.
Although it was already at the end of March, 0.001%S gasoil cargoes loading in Japan in late April were still seen offered in the market. However, most end-users have completed requirement for April and inquiries have slowed down. A South Korean oil company was said to have sold a 0.001%S gasoil cargo loading in late April at a discount of 55cts/bbl to the Singapore quotations. Elsewhere, more cargoes loading in late April were expected to be sold from Japan.
Refiners in South Korea were slow to sell spot cargoes. In the trade for fuel oil cargoes to be delivered in South Korea, Korea East West Power (EWP) bought 30,000mt of 2.5% sulfur fuel oil to be delivered during Apr 9-13 at a premium of lower than $3.00/mt to Singapore quotations on a CFR basis. Vitol was reportedly awarded. The price seemed to have been lower than the recent cargo bought by EWP as the time gap between the tender and laycan would be long as well as more market players took part in the tender.