Weakening market sentiment on expectations of increased supplies and weaker petrochemical margins have impacted premiums realised on naphtha sales.
Indian Oil Corp (IOC) has realized a premium three times lower than its previous sale. A 30,000 ton naphtha cargo for early-November lifting for lifting from Kandla to Sempra at a premium of about US$5/ton to its own price formula on a free-on-board (FOB) basis via tender. This is three times lower than a US$15/ton premium realised for a parcel lifting from the same port on Oct. 17-19, also to Sempra. Supplies into Asia are increasing Qatar has started its new condensate splitter, pumping 200,000 tons per month of additional naphtha, ADNOC is expected to start up its condensate splitter early next year.