Thursday 2 May 2013

Asia Naphtha-India ONGC sells at lowest price since Dec

India's Oil and Natural Gas Corp (ONGC) sold a May naphtha cargo to Idemitsu Kosan of Japan at about $34 a tonne above Middle East quotes on a free-on-board (FOB) basis, the lowest premium for one of its Hazira cargoes since December, Reuters data showed.

The 35,000-tonne cargo, sold on April 30, is scheduled for May 18-22 loading from Hazira and is ONGC's second cargo for May shipment.
It usually sells up to three cargoes a month from Hazira and between one and three from Mumbai.
"The current price is still high. But buyers will pay according to how much they are in need of the cargoes," said a Singapore-based trader.

Traders added that the average premium for a cargo lifting in second-half May from India should not be more than $30 a tonne to Middle East quotes on a FOB basis given ample supplies.
Asia has been hit by softer demand as some crackers have replaced a small portion of their light fuel feedstock with liquefied petroleum gas (LPG).
Taiwanese Formosa Petrochemical Corp and South Korea's YNCC have both reduced operating rates since April to about 90 percent.

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