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.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|