UpdateTasweeq sells 600,000 tonnes naphtha for Oct ’10-Sep ‘11

19 August 2010 10:59  [Source: ICIS news]

SINGAPORE (ICIS)--Qatar International Petroleum Marketing (Tasweeq) has sold by tender 600,000 tonnes of naphtha for October 2010 to September 2011 supply at a double-digit premium underscoring a firming Asian naphtha market, traders said on Thursday.

The cargoes fetched premiums of $14-15/tonne (€11-12/tonne) to Middle East quotes FOB (free on board), they said.

The prices would be reviewed every quarter, traders said.

“Prices are getting stronger. Even the (spot) Indian tenders are awarded at premiums of $20/tonne,” said one trader, referring to a string of fresh Indian tenders that recorded a spike in price premiums to Middle East quotes FOB.

Term naphtha prices soared from recent ADNOC’s term naphtha deal, which was sealed at a premium of $12.50/tonne to its own price formula FOB for October 2010 to March 2011 loading, traders said.

Prices soared due to rising demand for the petrochemical feedstock in Asia, they said.

Asian naphtha crack spread touched over a two-month high of around $108/tonne this week, supported by firm fundamentals, ICIS data showed.

($1 = €0.78)

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By: Felicia Loo

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