At a time when naphtha supplies from Europe have declined due to increased consumption by refineries there, naphtha prices in the Asian market is under additional pressure on slipping exports from India. As compared to August naphtha exports at 760,000 tons, India exported just about 750,000 tons of naphtha for September as the failed monsoon in the country has created a dearth of hydropower shortage and increased dependence of domestic generators on light fuel. This would add some pressure on buyers hoping for extra supply from India, who are now looking to exports from the Middle East and China to help fill the shortfall. As a result, September crack spreads have risen this week to a near 6 month high of almost US$115/ton premium.
At current supply levels, Asia would have been short of an estimated 350,000 tons, but has managed to procure about 100,000 tons from Saudi Aramco for H1-September lifting from Ras Tanura and 60,000-62,000 tons for September lifting from China's WEPEC.
18-Aug-09 
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