India’s MRPL sells naphtha stem at stronger premium

13 August 2012 04:28  [Source: ICIS news]

SINGAPORE (ICIS)--India’s Mangalore Refinery and Petrochemicals Ltd (MRPL) has sold by tender 35,000 tonnes of naphtha to PetroDiamond at a higher premium amid rising demand for naphtha in the gasoline blending pool, traders said on Monday.

The cargo was sold a t a premium of around $33.50/tonne (€27.14/tonne) to FOB (free on board) Middle East quotes for 17-19 September loading from New Mangalore port, they added.

In its previous tender, MRPL sold a 35,000-tonne naphtha parcel for 9-11 September loading from New Mangalore to PetroChina at a premium of $29.50/tonne to FOB Middle East quotes, traders said.

A stronger reforming margin, or the price spread between gasoline and naphtha, has prompted some players to divert naphtha supplies into gasoline blending, they said.

Gasoline demand in top buyer Indonesia was robust because of stockpiling for the upcoming festive period while a shutdown at Vietnam’s sole refinery pushed players to buy more gasoline barrels overseas, traders said.

Moreover, refinery upsets in the US West Coast engendered the pull of Asian arbitrage gasoline barrels to plug in the domestic supply shortfall, they added.

($1 = €0.81)

By: Felicia Loo

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