Spot trading for Malaysian crude loading in December is set to kick off this week after state-owned Petronas announced its official selling price differential for October late last week. It raised the October OSP to a premium of $3.95/b to Platts Dated Brent crude assessments, up 65 cents from September, in line with market expectations.
In this video, Associate Editor Weng Yi Le also talks about how the acrylonitrile-butadiene-styrene margin in Asia is holding near a four-year high amid bullish automobile demand in China and tight supply. With no new ABS plants scheduled to start up before yearend, sources expect demand to continue to outstrip supply in the fourth quarter.
Meanwhile, JKM starts the week on a steady note as Indian buyers return to the market after the monsoon season. S&P Global Platts editors will share insights on the Asian LNG market at the LNG Derivatives Forum on October 10. For details, click here.
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Video Transcript
The highlights on Platts Market Movers Asia this week: Markets in China and South Korea reopen after extended holidays, Japan's coal buyers are close to fixing an annual contract price, and Panamax freight rates rebound in the Asia Pacific.
First, in oil, spot trading in Malaysian crude loading in December is set to kick off this week after state-owned Petronas announced its official selling price differential for October late last week. It raised the October OSP to a premium of $3.95/b to Platts Dated Brent crude assessments, up 65 cents from September. This was in line with expectations, as regional sweet crude traders had expected a premium of around $4.
Regional traders said cash differentials for light sweet Malaysian grades, including Labuan, Kikeh, Miri Light and Kimanis, are expected to be supported this month by healthy middle distillate product margins.
Over the past two trading cycles, light sweet Malaysian crude cargoes have received healthy spot premiums of around $3.50/b to $4.10/b.
In bunkering, Singapore is set to release September marine fuel sales data on Friday. Fuel sales in the world’s largest bunkering port rose 3.2% year on year in August to 4.36 million mt, and edged down 0.7% month on month. What do you think the September data will show? Let us know via Twitter using #PlattsMM.
In thermal coal, Japanese buyers are expected to finalize their annual contract price with Australian thermal coal suppliers this week for deliveries starting this month. The talks have overshot the deadline of October 1, and have been bogged down around the $97-$98 FOB Newcastle level, according to market sources.
In shipping, Panamax freight rates in the Asia Pacific rebounded late last week due to increased demand from cargoes out of west coast North America. With China and South Korea returning from holidays this week, spot activity is expected to increase, adding further support to rates.
In petrochemicals, the ABS margin in Asia is holding near a four-year high amid bullish automobile demand in China and tight supply. With no new ABS plants scheduled to start up before year end, demand is set to continue to outstrip supply in the fourth quarter, sources said.
In LNG, the JKM will kick off this week on a steady note after hovering around the mid-$8 mark last week as Indian buyers returned to the market after monsoon season. The forward December deal price rose to $9/MMbtu. Platts is hosting its LNG Derivative Forum on Tuesday as the use of JKM Swaps continues to grow. Check out the link below to find out more about the event.
Remember to join our conversations on Twitter with #PlattsMM. Thanks for kicking off your Monday with us and have a great week ahead!