LG Chem buys 600,000 t/y of term naphtha

26 May 2008 04:26  [Source: ICIS news]

SINGAPORE (ICIS news)--South Korea's LG Chemical has bought a total of 600,000 tonnes of naphtha for its term contract from July 2008 to June 2009, industry sources said on Monday.

It bought 300,000 tonnes of naphtha at a discount of $1.50/tonne to Japan quotes CFR (cost and freight) Japan for delivery to its Daesan facilities and another similar volume at a discount of $2/tonne to Yosu.

The tender, which was floated last week, sought open-spec naphtha with a minimum 70% paraffinic content.  

LG Chem previously bought 250,000 tonnes of naphtha for June 2007-May 2008 at premium of $2/tonne over Japan quotes for Daesan. The volume for Yosu was not known then.

Other South Korean firms are also seeking term naphtha supplies over similar periods.

Asian naphtha closed Friday at $1,114-1,115/tonne for the first half of July contract and $1,111-1,112/tonne for the second half of July.  

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By: Desmond Chia
+65 6780 4359

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