India’s Reliance Industries has sold 50,000 tons of naphtha for end July loading to Glencore at a premium of US7/ton to Middle East quotes on free on board basis. This translates to barely 50% of the premiums it had fetched for an earlier parcel. This indicates sinking of sentiments on high spot supplies as petrochemical makers maintain low feedstock inventories as naphtha cracking margins weaken. Naphtha cracks have fallen to US$87.40/ton premium as compared to its peak on Jan. 15 at around US$178/ton.
Qatar, Kuwait, Saudi Arabia and UAE sold a total of 310,000 tons of naphtha for July-August loading in less than two weeks after their Asian buyers either refused to renew term contracts, or reduced volumes citing high premiums.