Aug-July naphtha to be sold at lower premiums, supplies from India increase

05-Jun-09

Asia's second-largest term naphtha exporter Kuwait Petroleum Corp (KPC) has proposed to sell naphtha for August 09-July 10 lifting at a US$15/ton premium to Middle East quotes on a free-on-board (FOB). This pegs the premium at about 4 dollars cheaper than April-March cargoes. The resultant drop reflects a weaker market outlook. A certain degree of constraints have not restricted supplies as in Q1, mainly because of increased spot naphtha exports from India. India's BPCL and HPCL have offered upto 210,000 tons of naphtha for loading in July. BPCL has offered 120,000 tons of low-aromatic naphtha for July 16-20 loading. It’s previous shipment in June sold at a premium of US$8/ton to Middle East quotes. HPCL has offered a total of 75,000-90,000 tons of naphtha for loading from Vizag, in three shipments on July 2-4, July 13-15 and July 25-27.