South Korea's LG Chem buys 100,000t naphtha for H1 Aug

30 June 2010 04:00  [Source: ICIS news]

SINGAPORE (ICIS news)--South Korea’s LG Chem has bought 100,000 tonnes of open-spec naphtha in the spot market for delivery in the first half of August, a company source said on Wednesday.

The cargoes fetched discount levels of between $4.00-5.00/tonne (€3.30-4.10/tonne) to Japan quotes CFR (cost and freight), the source said.

“The current propylene margins could somewhat support maximum run rates,” he added.

LG Chem is currently operating its two naphtha crackers at 100%.

The company operates a 760,000 tonne/year naphtha cracker in Daesan and a newly-expanded 1m tonne/year cracker in Yeosu, according to ICIS. After the debottlenecking, the company also was planning to shut the Daesan cracker for expansion works in March next year to boost the capacity to 910,000 tonnes/year.

($1 =  €0.82)

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By: Felicia Loo

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