December naphtha exports from India will dip to levels below 1 mln tons due to a reduction by Indian Oil Corp (IOC). IOC plans a 30% reduction in naphtha exports in December from its usual monthly volume of 180,000 tons, as it plans to divert the fuel for domestic demand. This cutback is concurrent with a recovery in demand from Asian end users and return of most petrochemical plants from maintenance shutdowns.
September and October saw naphtha exports from India reach near-record volumes. Reflecting the firmer market, Asian naphtha's notional differential has flipped into premium levels on Tuesday, the first time since Oct. 23. The differential had been mired in deep discounts since Indian refiners increased their naphtha exports from May-loading cargoes, peaking at more than 1 million tonnes each month in September and October.
In November, Indian refiners sold approximately 935,000 tons, lesser than the forecast of 1 million tons. This shortfall was due to a pause in exports for November by Oil and Natural Gas Corp from Hazira, due to a shortage of naphtha amid a maintenance shutdown at one of its refining units. ONGC has since resumed its exports from Hazira by selling two December-loading car