UpdateAdnoc to hold term naphtha talks with Asia buyers in Singapore

27 January 2011 10:01  [Source: ICIS news]

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SINGAPORE (ICIS)--Abu Dhabi National Oil Company (Adnoc) will hold term naphtha talks with customers in Asia from 7 February, for April 2011-March 2012 supply, traders said on Thursday.

The negotiations to be held in Singapore would last a week, they added.

For the current term contract between April 2010 and March 2011, Adnoc sold term paraffinic naphtha at a premium of $25.50/tonne (€18.62/tonne) to Middle East quotes FOB (free on board), they added.

The company also sold low-sulphur naphtha at a premium of $24.50/tonne to Middle East quotes FOB, as well as splitter naphtha at Middle East quotes FOB plus $23.50/tonne, traders said.

“There are expectations that term prices may firm this time, as the downstream markets are still perceived strong,” said a trader.

China’s olefins imports rose year on year in December amid tight domestic supply and the growth is expected to continue in 2011.

Olefins imports would most likely continue to be strong in 2011 since no big petrochemical complex was scheduled to startup in China this year and domestic consumption was still strong,.

Ethylene imports in December jumped 37% year on year to 88,445 tonnes and butadiene imports grew 67% to 38,727 tonnes, according to the data from China Customs.

Asia naphtha prices were assessed as $868-869/tonne CFR Japan on Wednesday, according to ICIS data.

($1 = €0.73)

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By: Felicia Loo

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