Pakistan’s Attock Refinery (ARL) and National Refinery Ltd (NRL) sold mid-September naphtha to Glencore at a narrower discount, but sentiment is sliding as the market is well-supplied, traders said on Tuesday.
The two refiners sold a total of 29,000 tonnes for Sept. 15-17 loading from Karachi at a discount of 68 cents a barrel to Singapore quotes on a free-on-board (FOB) basis.
They had previously sold a total of 23,000 tonnes for Aug. 22-24 loading, also to Glencore, at a discount of $1.40 a barrel FOB.
Naphtha sentiment has been on a downward spiral as supplies are expected to build on incoming arbitrage volumes and India keeping its September exports steady at about 850,000 tonnes.
Cracks, the premiums/losses obtained from refining Brent crude into naphtha, hit a two-week low on Tuesday at $103.48 a tonne premium.
Separately, Pakistan Refinery Ltd (PRL) sold 15,000 tonnes for Oct. 2-4 to Dubai-based trader EMD DMCC at a premium of $4.00 a tonne to Middle East quotes on a FOB basis.
This is lower compared to what it had fetched from Daelim earlier for 15,000 tonnes for early September loading at $6.50 a tonne premium FOB.
Daelim will co-load the cargo with 2,500 tonnes from BYCO refinery.