Monday, Mar 01, 2010
(Adds comments from buyers and traders, information on supply levels, earlier pricing)
SINGAPORE (Dow Jones)--The United Arab Emirates' state-owned Abu Dhabi National Oil Co. has offered its three grades of naphtha for loading from April for 12 months at higher premiums than in the last cycle, in line with market expectations, buyers said Monday.
The company is offering its splitter naphtha at a premium of $23.50 a metric ton to its own formula, low-sulfur naphtha at a premium of $24.50/ton and paraffinic naphtha at a premium of $25.50/ton, they said.
Buyers have been asked to reply to these offers by March 3. Adnoc, one of the top three suppliers of naphtha to Asia, sells it on a free-on-board Ruwais-loading basis.
"Adnoc has already asked us to indicate volumes earlier...(these latest offers are meant for) pricing discussion only," a buyer said.
The offers, though deemed high by buyers, are generally in line with expectations as Kuwait Petroleum Corp. has already sealed deals for April 2010-March 2011 full-range supply at plus $22.00/ton to Middle Eastern quotes.
"(Adnoc's) pricing levels are not surprising," a trader said.
The producer is expected to increase supply significantly only from July--instead of April as expected earlier--so it doesn't appear to have any need to turn into an aggressive seller or to offer prices any lower.
"New supplies (from Adnoc) are delayed" again, the trader said.
The latest offers are higher than in Adnoc's last cycle, but almost identical to year-earlier levels, according to traders.
For January-December 2010 contracts, Adnoc settled premium levels at plus $14.50/ton for splitter grade, plus $15.50/ton for low-sulfur grade and plus $16.50/ton for paraffinic grade. The producer sealed April 2009-March 2010 deals at plus $23.50/ton for splitter grade, plus $24.50/ton for low-sulfur grade and plus $26.00/ton for paraffinic grade.
-By Max Lin, Dow Jones Newswires; 65-6415-4063; max.lin@dowjones.com
(END) Dow Jones Newswires
01-03-10 0501GMT
