01 March 2010 08:28 [Source: ICIS news]
“The term offers are quite reasonable considering current spot prices,” one trader said.
But other traders said the premiums could go lower on expectations of an increase in naphtha supply from Abu Dhabi.
The term offer for splitter naphtha stood at a premium of $23.50/tonne (€17.16/tonne) to ADNOC price formula, the same as the current contract from April 2009 to March 2010, traders said.
ADNOC offered low-sulphur naphtha at a premium of $24.50/tonne FOB (free on board), and the pentane plus grade at a premium of $25.50/tonne FOB, they said.
For the current yearly contract that ends by 31 March, the term price for pentane plus grade was at a premium of $26.00/tonne FOB and the term price for low-sulphur naphtha was at a premium of $24.50/tonne, traders said.
ADNOC is expected to raise naphtha exports by an additional 3 million tonnes a year to 8 million tonnes annually this year, once its two condensate splitters with a combined capacity of 280,000 barrels/day operate at full capacity, industry sources said.
“Because of the gas projects, there will be more feedstock supply,” one source said.
Asia’s benchmark naphtha crack spread closed on Friday at over a two-high week of $150.075/tonne versus Brent crude, largely triggered by robust crude futures, ICIS pricing data showed.
($1 = €0.73)
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