14 April 2008 11:16 [Source: ICIS news]
LG Chem will use an estimated 30,000 tonnes of LPG instead of naphtha in May, a source said.
The replacement will be most likely in first half of May as the Korean end-user had recently purchased an open spec naphtha cargo for delivery in second half of May, another added.
Some northeast Asian end-users have aimed to increase liquefied petroleum gas (LPG) usage as a feedstock instead of naphtha due to the latter's current high costs.
Naphtha prices hit a record high of $931/tonne CFR (cost and freight)
Asian naphtha prices closed softer, with second-half May indications pegged at $924.75-925.75/tonne CFR
Demand for naphtha as a feedstock has weakened on relatively high costs and poor margins from downstream derivatives.
Korean end-users had mostly covered their May requirements and the few who have not were deferring purchases till prices soften, market sources said.
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