Mangalore Refinery and Petrochemicals (MRPL) has sold 30,000 tons of full-range naphtha for early-March delivery. The availability of this additional material, one of the first Indian naphtha exports for next month, has exerted added pressure on prices that are being brought down by higher supplies. Sold at a premium of US$15-17 a ton to cargo, free on board (FOB) basis, it is priced lower than MRPL's previous sale at a premium of US$19 a ton to Middle East quotes.
Bharat Petroleum Corp is also reporte dto have sold 30,000 tons of low-aromatic naphtha to an oil major and IndianOil (IOC) also sold three cargoes totalling about 92,000 tons to European trader Glencore.
These three transactions add up the total naphtha exported by Indian producers for February and early March to 542,500 tons, indicating a recovery in exports towards the high monthly volumes of upto 1 mln tons until November 2007.
Dual forces of increased supplies and a dip in demand on account of scheduled plant maintenance turnarounds in Q2-08, have pushed benchmark Asian open-spec naphtha premium to Brent to below $160 a ton for the first time since late-November.