Idemitsu buys 70,000 tonnes of naphtha from India: Reuters

As result of persisting strong demand for naphtha, Idemitsu Kosan of Japan paid a steep premium to buy a total of 70,000 tonnes of naphtha from Mangalore Refinery Petrochemicals Ltd (MRPL) and Oil & Natural Gas Corp (ONGC), according to Reuters.
 
Supplies of naphtha was lower than demand because of a string of recent and ongoing refinery maintenance in India and previous refinery run cuts in Asia due to poor refining margins. In addition, lack of alternative liquefied petroleum gas feedstock resulted in higher demand for naphtha.
 
According to Reuters report, Idemitsu Kosan bought a 35,000-tonne cargo from ONGC for January 24-25 loading from Hazira at levels in the low $40s a tonne to Middle East quotes on a free-on-board (FOB) basis, marking the highest premium ONGC has fetched a naphtha cargo sold out of Hazira in about nine months. ONGC also exports naphtha from Mumbai.
 
The Japanese petrochemical major also locked in 35,000 tonnes from MRPL, a subsidiary of ONGC, for January 26-28 loading from New Mangalore at premiums around the low $40s a tonne level, a new eight-month high premium for MRPL.