Hindustan Petroleum Corp realizes better premiums on naphtha for September lifting

19-Aug-09

Diminishing imports from Europe have propped up premiums in Asia for naphtha exports from India. Hindustan Petroleum Corp Ltd (HPCL) has sold 25,000-30,000 tons for Sept. 1-3 loading to Vitol at a premium of around US$20-22/ton to Middle East quotes, on a free-on-board (FOB) basis, as compared to the US$17/ton realized from South Korea's SK Energy from the same port on Aug. 20-22. Earlier, Indian Oil Corp has sold 35,000 tons of naphtha by tender for September 1-4 lifting from Chennai to Cargill at US$21-22/ton above its own pricing formula on a free-on-board (FOB) basis, as compared to a premium of US$13/ton for a parcel lifting from the same port on Aug. 17-20 to Trafigura. Reliance Industries has sold 75,000 tons of naphtha by tender to Itochu for September 6-10 lifting from Sikka at a premium of US$20/ton above Middle East quotes on a FOB basis. This was higher than the premium of US$15/ton for a parcel slated for Aug. 31-Sept. 4 lifting. MRPL sold a 30,000 ton cargo to Itochu at a premium of US$19/ton to Middle East quotes, FOB quotes. Bharat Petroleum Corp. Ltd. (BPCL) has realized lower than last month premiums on a low-aromatic naphtha grade cargo for late August-early September lifting. At a time when Indian suppliers are raking in increased premiums, the reverse has happened with this deal mainly due to the prompt shipment of the cargo, which gives traders little time to seek end users. BPCL has sold a 30,000 ton cargo for August 25-September 2 lifting from Mumbai to Glencore at a premium of US$13/ton to Middle East quotes, on a free-on-board (FOB) basis, as compared with about US$25-26/ton premium fetched for a parcel of the same grade slated for July 31-Aug. 4 lifting, also from Mumbai.