Singapore/span>
Singapore
Prices are steady this week as most producers have sold out their spot
volumes for deliveries to be made in May.
A scheduled 45-day shutdown by ExxonMobil taking place in the middle of June is likely to see the market tighten. Producers hopeful of stronger prices on the back of the supply tightness are said to be holding their June positions for now. Market sources expect that a better idea of June prices will be available in a fortnight or so.
Truck deliveries to Malaysia seem to have slowed down slightly this week but prices remain unchanged at about $277/t fob.
Malaysia
A state-owned refinery is said to be offering about 6,000t of 80-100
asphalt on the market at about $267/t fob. A number of regular buyers are said
to be receiving slightly more competitive offers. The domestic price remains
unchanged from last week with the delivered offer price still at about 1,000
ringgit/t ($292.48/t).
In May, asphalt demand for road paving projects is expected to enter a seasonal high. But heavy rains in the capital, Kuala Lumpur, have delayed the progress of some projects. Rainy weather in the country typically eases off at the end of April and early May.
Indonesia
Prices continue to be stable this week and are likely to stay that way
into May. A state-owned refiner previously considering a price revision is
believed to be keeping prices unchanged in view of firm prices in the region
and weak domestic demand.
Demand for asphalt in the country has yet to pick up, unlike last year when the rainy season came to an end by the later part of April. Heavy rains in Jakarta this week are expected to continue into the early part of May at least, further dampening demand.
A 1,000t cargo priced at $304-306/t on a delivered basis from Singapore arrived in Indonesia this week. Freight for this route is estimated to be about $30-40/t.
Thailand
Prices are largely unchanged for Thailand this week as producers offering May
volumes have been settling at $260-265/t fob.
One refiner that sold 5,000t last week to Vietnam at about $260/t fob has settled another 5,000t cargo to China this week at $260-265/t fob. The producer had earlier offered about $270/t fob but weaker than expected demand in China saw prices conclude lower.
A refinery based in Rayong province is said to have a small volume to offer at about $260-265/t fob. The producer had been out of the spot market in April as its supplies were tied to commitments carried over from an emergency shutdown earlier this year.
Another Thai refiner based in Chonburi is said to have 2,000-3,000t in spot cargo available for May delivery. According to market participants, the refiner’s offer price is said to be on the high side.
Japan
The Japanese market is largely quiet with many refineries carrying out
maintenance shutdowns from April to June. Domestic demand is also weak as
construction projects have slowed down at the start of the new fiscal year.
Cosmo Oil’s Chiba refinery is currently undergoing maintenance and the producer has no spot volumes for export to offer. Healthy domestic prices — estimated to be about $275/t fob now — and the refinery shutdown is likely to see the producer concentrate on the domestic market until September this year.
Nippon Oil is said to have cargoes available for May delivery despite supplies being relatively low at the moment. Negotiations for prices are ongoing but market sources say the cargoes could be sold to buyers in China at around $300-310/t cif.
South
Korea
After seeing
little export movement in the last few weeks due to strong demand from domestic
and term contract buyers, the spot price in South Korea has strengthened for
the coming month.
SK is said to be only company fulfilling term contracted exports in the early part of May but the refiner could have spot volumes to offer in the second half of May.
S-Oil is believed to be sold out after concluding a few cargos for May delivery to China at $260-270/t fob. The producer will be carrying out scheduled maintenance at its Onsan facility in June and as a result will not have any spot availability that month.
China
Asphalt prices at most refineries were largely unchanged this week,
except at four to five refineries — mostly in east China, where prices went up
by Yn 100-200/t ($13-26/t). The market has been steady amid high stock levels.
Storage tanks currently have no room for additional shipments as large-scale
construction projects have yet to go into full swing ahead of the week-long
Labour holiday. More projects should emerge after the holiday, when the weather
becomes warm enough for construction. Cfr prices are unchanged at $305-320/t
this week.
Higher crude values and fuel oil prices in recent weeks have largely increased the production cost for refineries. Several independent refineries in Shandong have closed for maintenance this week. Production levels by three major refiners— Sinopec, Petrochina and CNOOC — should remain unchanged when they resume operation. These refineries are said to have fulfilled the minimum output volumes required of them, based on government regulations.
Market prices have been steadily rising this year, and this is contrary to the same period last year when domestic prices surged rapidly to around Yn3,700-3,800/t in east China. Prices for 2006 are about Yn700-800/t higher than present levels when comparing the same period. The steady increase in prices will reduce the possibility of last year’s abrupt declines taking place again, traders said.
China imported 354,200t of asphalt in March this year, bringing the total imports for the first quarter to 874,900t, up by 10.2pc when compared to the same period last year.
In east China, the Taizhou refinery is heard to have raised its offer price by around Yn150/t to Yn3,450/t, but the traded prices are believed to be Yn100-200/t lower. The offer price from CNOOC Asphalt this week is up by Yn100/t to Yn3,300/t. Petrochina Wenzhou also increased its price by Yn100/t to Yn3,000/t, but its traded price is lower by less than Yn50/t.
Panjin Northern refinery in northeast China has resumed production this week after a maintenance shutdown. The refinery increased its price by Yn200/t to Yn3,000/t. Petrochina Gaofu in south China raised its price by Yn100/t to Yn3,000/t.
Taiwan
Fob prices were unchanged this week. Formosa has sold up its May
cargoes of 10,000t this week.
India
Prices in India are unchanged this week while demand is expected to
continue to be strong until the end of May at least, before the start of the
rainy season. The next round of possible price revisions could however take
place next week.
State-owned Indian Oil Corporation’s Mathura refinery in Uttar Pradesh is scheduled for a 30-day maintenance shutdown starting on 26 May. This should coincide with a slowdown in domestic demand for asphalt, say market participants.
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