UAE’s Adnoc offers by tenders 125,000 tonnes early July naphtha

08 June 2012 05:51  [Source: ICIS news]

SINGAPORE (ICIS)--Abu Dhabi National Oil Company (Adnoc) has offered by tenders a total of 125,000 tonnes of splitter and low-sulphur naphtha for early July loading, traders said on Friday.

One tender is for 50,000 tonnes of low-sulphur naphtha to be loaded on 4 to 6 July, while another tender is for a 75,000-tonne cargo of splitter naphtha to be loaded on 7 to 9 July, traders said.

These were unsold term supplies for July 2012 to June 2013, as most of Adnoc’s term buyers have reduced their volume uptake because of high premiums being charged amid a prevailing soft spot market, they said.

Adnoc concluded its one-year contract term supplies for July 2012 to June 2013 early this week at a premium of $26.00-27.50/tonne (€21-22/tonne) to its pricing formula free on board (FOB).

“The premium that [Adnoc] asked for was too high. Many end-users like us can’t cope with such high premium,” a northeast Asian cracker operator said.

Buying interest for Adnoc’s spot material for early July loading seemed thin, as several traders and cracker operators are amply covered.

“We are unlikely to bid [for this tender]. We are covered,” a Singapore-based trader said.

“The cargoes are too prompt. I doubt there are buyers, who want to load prompt cargoes because of the [current] bad market,” another Singapore-based trader said.

At midday on 8 June, open-spec naphtha prices were at a 19-month low of $767.00-770.00/tonne CFR (cost & freight) Japan, according to ICIS data.

($1 = €0.79)

By: Ong Sheau Ling
+65 6780 4359

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