FocusIndia naphtha exports to fall in December

03 December 2007 04:04  [Source: ICIS news]

By Nurul Darni

 

SINGAPORE (ICIS news)--Naphtha exports from India are expected to decline for a second consecutive month in December against the 1m tonnes monthly record volumes set in September and October as domestic naphtha consumption from power plants surged, traders said on Monday.

 

Indian refiners have exported at least 400,000 tonnes of naphtha for December loading so far and the monthly total was expected to be below the 1m tonnes record level, traders said.

 

The decline in exports was partially due to domestic fertilizer plants switching to using more naphtha feedstock as the supply of natural gas tightened, traders familiar with the situation said.

 

"Fewer Indian naphtha exports also helped ease the recent supply glut. That's why spot naphtha cargoes can trade at a premium now," a Seoul-based naphtha trader said.

 

India’s naphtha exports started to fall in November as local demand surged. In November, Indian refiners have exported slightly over 300,000 tonnes of spot naphtha in addition to 150,000 tonnes that were already offered through term arrangements, traders said.

 

Asia has seen rising naphtha exports from India in the past few months this year, with volumes reaching as high as 1m tonnes for September and October loading respectively.

 

But exports in December would be reduced also partially because domestic consumers were recovering from maintenance refinery shutdowns, and therefore would require higher naphtha consumption this month, traders said.

 

Some traders said the fall in Indian naphtha exports was unlikely to change the demand-supply shift in the region.

“[The] lowering of naphtha exports will not affect the global market since the volume exported each month is 140,000 to 150,000 tonnes on average, a trader in Singapore said.

 

“This slight reduction in exports [in December] could be temporary and is unlikely to create any serious instability.”

 

Indian naphtha exporters include Oil & Natural Gas Corp (ONGC), Bharat Petroleum and Hindustan Petroleum.

By: Nurul Darni
65 6789 4359

< previous article(ICIS Podcast: Chemical News Central 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly