Singapore / New Delhi: India’s August and September naphtha exports will fall around 13% from July volumes, but this will not turn the weak market around as Mediterranean cargoes coming to Asia will plug the gap, industry representatives said on Tuesday.
Exports from India are projected to drop to 700,000 tonnes and below per month in August and September, versus July volumes of about 800,000 tonnes via tenders and private negotiations — the highest this year — a Singapore-based trader said.
This projection was in line with data from the US-owned consulting firm Naphtha Information Services (NIS). “There will be a minimum 100,000 tonnes drop in August. IOC (Indian Oil Corp. Ltd) always exports, but they do have less naphtha in August,” said Jim Weinrauch from NIS.
An IOC official said the drop was because the state-run firm — which usually exports around 180,000 tonnes of term and spot cargoes a month from Dahej and Kandla in Gujarat—was processing some of its naphtha into petrol for local consumption to reduce reliance on imports. Naphtha supplies were also diverted to meet domestic demand amid a shortage of gas.