Asia draws more naphtha from Europe, Russia in November
Vortexa Snapshot: Asia draws more naphtha from Europe, Russia in November
- Naphtha imports into Asia from Europe and Russia (Baltic and Black Sea ports) are forecast to rise to an eight-month high in November, Vortexa data show, amid a recent drop in supply from the Middle East.
- Asian imports from this west of Suez region would be up just under 5% month-on-month at 1.07mn mt, according to observed flows, compared with a monthly drop of around 20% from the Middle East region, a year-to-date low on the route.
- Top sources of imports from within the Europe-Russia region were Tuapse, Novorossiysk and Ust-Luga in November, in keeping with 2019 so far. Norway’s Mongstad rose to fourth place with the arrival of two LR2 cargoes, a particularly strong flow along the route.
- Separately, Asia’s imports from the Mediterranean region, including Algeria, were lower in November, amid reported refinery maintenance work and ample supplies from other regions.
- It is worth noting that imports of Indian naphtha into Asia (excluding intra-country movements) were also firm in November at around 820,000 mt, the second highest month so far this year. Imports from Reliance’s Jamnagar refinery complex accounted for more than one-third of total imports from India this month.
- Overall naphtha imports into Asia (excluding intra-region) are expected to reach around 4.8mn mt in November, down 15% from October. Weak ethylene and propylene prices weighed on steam cracker margins this month, amid rising naphtha feedstock prices, reportedly prompting operators to reduce run rates.