SINGAPORE: Abu Dhabi National Oil Co (ADNOC) has lowered its offers on three naphtha grades for May 2014 to April 2015 loading by 5 percent to 6.25 percent to $28.50 to $30.00 a tonne above its own formula on a free-on-board (FOB) basis, traders said on Thursday.
The current offers are now at $28.50 a tonne each for the splitter and low-sulphur grade and $30 a tonne for paraffinic grade.
Traders said ADNOC's current offers are more reasonable when compared to Kuwait's recent term deal for supplies lifting April 2014 to March 2015 at $32 a tonne to Middle East quotes on a FOB basis. But no buyers have accepted the revised price as they have until March 14 to decide.
The Asian naphtha market was weaker in most of February when compared to January but sellers' sentiment improved this week after exports from Europe to Asia were cut due to strong gasoline demand in the West.
Naphtha can be reformed into gasoline or be used as a gasoline blendstock.
Asia is expected to receive about 900,000 to 1 million tonnes of naphtha in April from Europe and the Mediterranean, the lowest monthly volume to arrive in the East since November.
The stronger fundamentals lifted the Asian naphtha crack to a two-week high of $124.60 a tonne on Wednesday, up 7 percent from a month ago.
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