Saudi Aramco has offered 131,000 tons of naphtha for May lifting amid strong demand and tight supplies caused by reduced exports from India and Europe, as per Reuters. This is an unusually high spot volume of naphtha from the refiner who usually sells spot volumes of 50,000-55,000 tons per month.
The volume includes 40,000 tons of A316 grade naphtha for May 29-31 loading from Rabigh, which will be co-loading with 15,000-16,000 tons of A310 from Jeddah. An option for buyers to lift either 55,000 tons of 180 grade naphtha for May 12-15 loading from Yanbu or 75,000 tons for May 15-18 loading from the same port was also given.
The tight supply situation is expected to ease from June: top naphtha supplier to Asia - Saudi Aramco is scheduled to complete maintenance at Ras Tanura, where a condensate splitter is currently shut. Additionally, Asia's top naphtha buyer Formosa Petrochemical Corp will shut its 700,000 tpa cracker on June 20 for a 40 day maintenance, accounting for more than 200,000 tons of naphtha demand.