As the naphtha markets soften on increasing exports from India, Indian Oil Corp (IOC) has managed to sell at a sharply lower premium as compared to previous shipments.
30,000 tons of naphtha for March lifting from Kandla has been sold by IOC for March 17-20 lifting to Petrochina at a per ton premium of US$31-32 to Middle East quotes, on a free-on-board (FOB) basis. This is an almost ten dollar decline in per ton premium it fetched from Glencore for a cargo for March 7-10 loading from Kandla port.
IOC is also offering 60,500-61,500 tons more of naphtha for late-March loading in a tender that closes on March 2, with bids to stay valid until March 3, totaling its March term and spot volumes to at least 181,500 tons. Reliance Industries has more than doubled its March spot exports to 240,000 tons from last months 105,000 tons in the wake of deteriorating domestic demand.