SINGAPORE: Qatar’s Tasweeq sold up to 100,000 tons 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 tons of plant condensate, or light naphtha, to a Western trader at premiums of $2.00-$4.00 a ton to Middle East quotes, on a free-on-board (FOB) basis.
It also sold 30,000-50,000 tons of full-range grade to another buyer at premiums of around $2.00 a ton, FOB.
These were sharply lower compared to what Total had earlier paid for a parcel lifting in July at $11.00 a ton 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 tons 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.
