Amid weakening sentiments, Titan seeks naphtha in a 12-month contract starting July

05-Jun-14

Malaysia-based Titan is seeking up to 120,000 tons of naphtha in a 12 month contract starting July, and this comes at a time when sentiment is gradually weakening due to more supplies ahead, as per traders in Reuters. Titan currently has a contract for around 200,000 tons of naphtha for April 2014 to March 2015 arrival at Pasir Gudang, sealed in February 2014 at parity levels to Japan quotes on a cost-and-freight basis, but based on a 45-day pricing formula. The petrochemical maker's tender, which closes on June 6 with offers valid until June 11, coincides with two other tenders issued this week by Taiwanese buyers CPC and Formosa Petrochemical. "But the market is not reacting to the purchase tenders," said a trader in Reuters. This is because the bears are emphasising on new condensate splitters coming up in Singapore and South Korea. These units will produce a range of oil products, with naphtha being a key yield. Formosa, Asia's top naphtha importer, is seeking to buy open-spec naphtha for first-half July arrival at Mailiao through a tender due to be awarded on Thursday. CPC, on the other hand, is seeking full-range and heavy naphtha for July 1-25 arrival at Kaohsiung in a spot tender, also due to be awarded on June 5.