Asia naphtha discounts continue on sparse demand

04 August 2008 18:30  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian naphtha discounts continue to deepen as demand from northeast end-users remains weak amid a spate of turnarounds from July to September, industry sources said on Monday.

Late last week, Samsung Total reportedly purchased a 25,000 tonne cargo of open spec naphtha at a discount of $5/tonne to Japan quotes CFR (cost and freight) Korea for second-half September delivery.

“Considering the current weak market situation, they might have bought the cargo at a deeper discount,” a NE Asian trader said.

Two weeks back, LG Chemical was said to have purchased 25,000 tonnes of open spec naphtha at a discount of $2-2.50/tonne to Japan quotes CFR (cost and freight) Korea and another 25,000 tonnes of full-range material at a discount of $1.50/tonne to Japan quotes CFR (cost and freight) Korea for September deliveries.

“We might be seeing even lower discounts on more supplies from India and Europe in August and September,” another source added.

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By: Desmond Chia
+65 6780 4359

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