05 July 2010 10:50 [Source: ICIS news]
SINGAPORE (ICIS news)--South Korea's Yeochun Naphtha Cracking Center (YNCC) has bought 50,000 tonnes of paraffinic naphtha for delivery in the first half of August, at a steep discount, traders said on Monday.
The cargo was priced $6/tonne (€4.80/tonne) lower than Japan quotes CFR (cost & freight), twice the amount of discount YNCC had in its previous tender, they said.
“This may be the deepest discount level in over a year for YNCC,” said a trader.
“The market is flooded with supply,” said a second trader.
YNCC last bought by tender 50,000 tonnes of naphtha for delivery in the second half of July, at a discount of $3.00/tonne to Japan quotes CFR.
Asian naphtha for second-half August delivery dropped by $3.50-4.50/tonne from Friday’s close to $615.50-618.50/tonne CFR Japan on Monday, amid a high influx of spot Middle East supply, ICIS data showed.
($1 = €0.80)
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