Taiwan’s FPCC awards H2 June naphtha buy tender

23 April 2008 03:46  [Source: ICIS news]

SINGAPORE (ICIS news)--Taiwan's Formosa Petrochemical Corp (FPCC) has awarded its tender to buy naphtha for delivery in the second half of June, industry sources said on Wednesday.

It bought about 200,000 tonnes of naphtha due to high discounts. The tender was awarded at a discount of around $2.50-3/tonne to Japan quotes CFR (cost and freight) Taiwan.

The tender, which had originally sought 75,000 tonnes of 70% open spec naphtha for 16-30 June delivery into Mailiao, closed on 22 April.

It previously bought a similar cargo at a premium of around flat to minus $1/tonne CFR Taiwan for delivery over 16 April-10 May into Mailiao.

Formosa had earlier bought liquefied petroleum gas (LPG) to be used as a feedstock instead of expensive naphtha, but could replace only 20% of its feedstock requirements with LPG. Some northeast Asian end-users had also switched to LPG.

By: Desmond Chia
+65 6780 4359

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