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Asia Naphtha-Indian Oil gets steady-higher prices |
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NEW DELHI/SINGAPORE, April 22 (Reuters) - Indian Oil Corp sold up to 61,500 tonnes of naphtha for mid-May loading at steady-to-higher premiums to Itochu and Vitol, and offered more parcels, bringing May exports to nearly 750,000 tonnes, traders said on Thursday.
IOC sold the 30,500-31,500-tonne cargo for May 16-18 loading from Dahej to the Japanese trader at premiums around $21.00 a tonne to the refiner's formula on a free-on-board (FOB) basis.
This was largely steady versus its previous sales of an early May cargo loading from Dahej, also sold to Itochu.
IOC sold another 30,000 tonnes, but for May 13-15 loading from Kandla, to Vitol at around $20.00 a tonne premium, FOB.
This was higher compared to an early May parcel sold to Shell from the same port.
IOC issued a new tender to sell another 30,500-31,500 tonnes for May 23-25 loading from Dahej, and 30,000 tonnes for the same lifting dates from Kandla.
The tender closes on April 27, with bids to stay valid until April 28.
Traders were expecting India to export around 900,000 tonnes, but the tally so far has been below that.
"But I think more tenders will show, as there are no reasons why India should reduce exports," said a trader.
This is because a portion of naphtha has been displaced by cheaper gas feedstock in Indian fertiliser and power plants.
This will prompt Indian refiners to continue exporting the cargoes.
"Premiums are still strong at $20.00 a tonne and above, and Indian refiners will likely want to cash in on that," said another trader.
Source : REUTERS
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