Idemitsu buys naphtha from BPCL by tender for the first time in over a year

15-Jan-10

Idemitsu Kosan Co. no longer holds a December-November term contract with Kuwait since last year. The Japanese petrochemical maker has bought a naphtha cargo from India’s Bharat Petroleum Corp Ltd (BPCL) by tender for the first time in over a year at a premium of around US$35/ton to Middle East quotes, FOB basis. The parcel is of 30,000 ton for February 14-18 lifting parcel from Mumbai port. Market players opine that Idemitsu probably paid a higher premium to abide by strict specifications guidelines to restock; at a time when inventory levels are low and choices limited due to the restricted supplies. Over 1.21 mln tons of Western naphtha is provisionally booked for Q1-10 arrival in Asia, with the bulk landing in February, causing naphtha premiums to retreat, despite firm demand.