Naphtha price and margins in Asia dip

18-Sep-12

Naphtha price in Asia fell to its lowest in about 1-1/2 weeks to US$992/ton on Monday, with margins falling to their lowest in around 3-1/2 weeks, at US$116.53/ton. The markets have been impacted by easing tight supplies with more than expected European and Indian cargoes, as per Reuters. India's September exports at below 550,000 tons were at their lowest in more than three years, but October exports are expected to be higher as refinery maintenance at Hindustan Petroleum Corp Ltd's (HPCL) Vizag and Bharat Petroleum Corp Ltd's (BPCL) Mumbai plants will end this month. “ India's supplies will increase while supply from the Middle East has been stable. Europe still has some room to export," said a Singapore-based trader. HPCL has offered 15,000 to 20,000 tons of naphtha for prompt Sept. 20-26 loading from Mumbai in a tender closing on Monday. If a deal materializes, this would bring India's total exports up to almost 530,000 tons this month, the lowest in more than three years.