India’s naphtha exports to decline on rising local demand

India’s naphtha exports to decline on rising local demand

India’s 2017 naphtha exports are expected to fall, after the volumes rose for the first time in five years in 2016, and this would prove untimely for buyers who are already hit by tighter supplies. Fewer European naphtha in Asia and a lack of alternative liquefied petroleum gas (LPG) feedstock were reasons that turned the weak naphtha around early this year. A fire mishap at Abu Dhabi’s Ruwais refinery, and now India’s supply reduction have deepened the supply dent, sending Asia’s naphtha margins (price difference between naphtha and Brent crude) to a 13-month high of $115.18 a tonne on Feb.14 <NAF-SIN-CRK>

India’s 2016 average monthly gross exports stood at 700,000 tonnes, official data showed, their highest since 2012. Their net exports (the difference between total exports and imports) were 460,000 tonnes. “These are expected to fall to 370,000 tonnes-380,000 tonnes a month this year,” said Premasish Das, Director for Asia and Middle East downstream oil markets at consulting firm IHS. Read More…

Credit By :FinancialExpress.com

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