Tasweeq cuts premiums for spot naphtha sales
Singapore, July 15, 2010
Qatar's Tasweeq sold up to 100,000 tonnes of naphtha for second-half August loading at sharply lower premiums, damped by weak fundamentals and fears of the market weakening further, traders said on Thursday.
The state-owned firm sold 50,000 tonnes of plant condensate, or light naphtha, to a Western trader at premiums of $2.00-$4.00 a tonne to Middle East quotes, on a free-on-board (FOB) basis.
It also sold 30,000-50,000 tonnes of full-range grade to another buyer at premiums of around $2.00 a tonne, FOB.
These were sharply lower compared to what Total had earlier paid for a parcel lifting in July at $11.00 a tonne premium.
'The market is hit by rising spot supplies from the Middle East,' said a trader.
Middle Eastern suppliers Saudi Aramco, Adnoc, Kuwait and Tasweeq were forced to unleash more than 700,000 tonnes of spot naphtha into the market for July-August loading after their term buyers had either dropped their long-term contracts with them, or reduced their term volumes citing high prices.
Tasweeq is expected to continue exporting spot naphtha for the remaining year.-Reuters