Naphtha margins slide in Asia amid falling naphtha in Europe, higher Indian volumes

17-Oct-12

Asian naphtha margins dropped by US$2.25 to a 3.5 week low at US$114.20 on Tuesday amid sliding European naphtha and gasoline values, as per Reuters. More offers for November loading shipments had also emerged fromIndian producers during the day. Bharat Petroleum emerged to offer 70,000 tons of H2-November loading cargoes from Mumbai. Hindustan Petroleum also offered 50,000 tons of naphtha for November loading from Mumbai. Oil and Natural Gas Corporation issued a tender to sell 35,000 tons of naphtha for November 12-13 loading from Mumbai. Meanwhile, demand from end-users in the petrochemical market is gradually emerging with South Korea's Honam Petrochemical buying at least 50,000 tons at a premium of $16.50/ton to Japan quotes on a cost-and-freight (C&F) basis. The cargoes will be delivered into Daesan and Yeosu. Honam's purchase is higher than LG Chem's purchase of 50,000 tons for H2-November at a premium of US$14.50/ton on Monday and is also the highest transacted premium for November deliveries according to Reuters data.