Japan’s Mitsui Chem buys H2 Feb naphtha at $20-21/t premium

19 January 2010 10:38  [Source: ICIS news]

SINGAPORE (ICIS news)--Japan’s Mitsui Chemicals has bought a prompt open-spec naphtha cargo for second-half (H2)February delivery at a strong premium, underscoring the robust downstream petrochemicals market, traders said on Tuesday.

The firm paid a premium of $20.00-21.00/tonne (€13.80-14.49) to Japan CFR (cost and freight) quotes, they added.

“Spot naphtha supplies are very tight. Petrochemical margins are very, very strong,” said a trader.

The price was sharply higher compared with what Taiwan’s (FPC) paid last week. Formosa bought 100,000-120,000 tonnes of open spec naphtha for H2 February delivery at a premium of $12.60-17.00/tonne to Japan CFR (cost and freight) quotes.

Reflecting tight supply, a trader bought a 3,000-3,500 tonne spot ethylene cargo for first-half February loading last week at a high of $1,350/tonne FOB 9free on board) NE (northeast) Asia, based on data from ICIS pricing.

($1 = €0.69)

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By: Felicia Loo

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