Amid robust sentiments, Egyptian General Petroleum Corp (EGPC) has offered 350,000 tons of naphtha for September-December by tender. Market sentiment is strong due to short-covering by buyers. One parcel is being offered for September, three cargoes each for October and November, three cargoes in December, of which one is an optional cargo. Each parcel is 35,000 tons, to be lifted from the port of Suez. The tender will close on Wednesday, but bids for the cargoes will stay valid until Sept. 3. Traders usually re-sell the cargoes to Asia.
Currently, the Asian market is strong- Some buyers did not buy sufficient cargoes for September in anticipation of a price drop. However, prices trended up and resulted in a rush for parcels by some buyers to cover their short positions. This has strengthened market sentiments.