08 July 2008 08:03 [Source: ICIS news]
SINGAPORE (ICIS news)--Asian naphtha premiums have been softening on weak demand from northeast (NE) Asian end-users, industry sources said on Tuesday.
Late last week, Yeochun Naphtha Cracking Center (YNCC) paid premiums of $9-10/tonne to Japan quotes CFR (cost and freight) Korea for 75,000 tonnes of open spec naphtha for August delivery.
This was about $3-4/tonne lower than deals done in the earlier part of last week, when LG Chem snapped up 50,000 tonnes of open spec naphtha at a premium of $13/tonne for delivery during the first half of August.
At the same time, Korea Petrochemical Industrial Co (KPIC) also purchased a 25,000 tonne cargo of full-range naphtha at a premium of $15/tonne for August delivery, which is equivalent to about $13.50/tonne for open spec material.
Early last week, Taiwan’s Formosa Petrochemical Corp (FPCC) purchased 80,000 tonnes of open spec naphtha for delivery in the first half of August.
The company also purchased a 50,000 tonne cargo of open spec material and another 30,000 tonne cargo for delivery during the same period from two western traders at a premium of around $5/tonne to Japan quotes CFR Taiwan.
Most NE Asian end-users had covered their August requirements as they had started purchasing naphtha since mid-June.
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