Indian Oil Corp (IOC) has fetched a very high premium on 90,000 tons of naphtha sold for Q1-2010 lifting to Itochu. The premium is six times higher than what it had fetched from Malaysia for parcels lifting in September-December on robust demand and limited supplies. Premium amount for three equal parcels was US$30/ton to its own price formula on a free-on-board basis as compared with the US$4.97/ton premium the company fetched from Malaysia's Petronas in June for 120,000 tones of naphtha for September-December loading from the same port.
A delay in arrival of an estimated 700,000-800,000 tons of western naphtha has also triggered this rally. The cargoes are expected to arrive in Asia in Q1-2010, although some cargoes could be delayed by about 10 days due to icy temperatures that have wreaked havoc on transportation systems in some parts of Europe.