07 April 2010 09:53 [Source: ICIS news]
SINGAPORE (ICIS news)--Taiwan’s Formosa Petrochemical Corp (FPC) is expected to skip purchases of spot naphtha for delivery in the second half of May, due to ample domestic supply, traders said on Wednesday.
The refiner had already secured 200,000-250,000 tonnes of spot naphtha for arrival in the first half of May, at premiums of $3.50-4.50/tonne (€2.63-3.38/tonne) to Japan cost and freight (CFR) quotes, they said.
“I doubt Formosa will come out to buy naphtha in the spot market for second-half May. The market is going downhill,” said a trader.
On signs of a bearish market, Asia’s benchmark naphtha crack spread versus Brent crude sank to a five-month low of $108.55/tonne against Brent crude on Tuesday, ICIS pricing data showed.
($1 = €0.75)
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