Reliance fetches higher premium for naphtha parcel for December lifting

12-Nov-09

Robust demand from Taiwan and South Korea has impacted the Asian naphtha markets despite a steady flow of supplies from India. India's Reliance Industries has fetched a premium higher by 5-6 dollars over November premiums on a naphtha parcel for December lifting. Reliance has sold the 75,000 ton cargo for Dec. 1-5 lifting from Sikka by tender to Western trader Cargill at a premium of around US$20/ton to Middle East spot quotes, on a free-on-board (FOB) basis. Very little market activity was witnessed last week as key market players were busy at a major oil conference. This week, almost 272,500 tons of naphtha for H2-ZDecember arrival has been booked by South Korea's YNCC and KPIC, and Taiwan's Formosa. LG Chem and Samsung Total are also scouting for offers and expected to conclude deals shortly. Robust buying interest has propelled naphtha cracks to a near two-month high of US$109/ton premium.