SINGAPORE: Kuwait Petroleum Corp (KPC) sold 50,000 tonnes of full-range naphtha for second-half May to a Japanese trading firm at a lower premium versus sales for two first-half May parcels, traders said yesterday.

The state-own company sold the cargo for May 16-21 loading to Mitsui Co at a premium of close to $10.00 a tonne to Middle East quotes on a free-on-board (FOB) basis.

This was lower compared to around $15.00 a tonne premium it fetched from Shell and Petro-Diamond for a total of 100,000 tonnes of naphtha slated for first-half May lifting.

Premiums have been falling recently because of an influx of European and Middle Eastern supplies. KPC, which is not a usual exporter of spot naphtha, had been offering spot lots due to a delay in the startup of a new aromatics plant.

“I expect KPC to continue offering some spot cargoes for June lifting,” said a Northeast Asian trader.

India is also expected to raise its May exports as more customers switch to gas. [ID:nSP403797].

“The premium is not bad at all,” said one of the traders, who was referring to the current state of supply compared to before.

Overall, buyers are not in a hurry to replenish stocks as they expect further slides in prices.