UpdateTaiwan's Formosa partly awards term naphtha at $6/t discount

09 July 2010 08:00  [Source: ICIS news]

(adds current naphtha spread)

SINGAPORE (ICIS news)--Taiwan’s Formosa Petrochemical Corp (FPC) has awarded part of its term naphtha tender at a discount of $6/tonne (€4.7/tonne) to Japan quotes, traders said on Friday.

Formosa had requested up to 300,000 tonnes of naphtha for October 2010 to September 2011 supply or October 2010 to March 2011 supply, they said.

“Formosa has awarded some cargoes,” said one trader.

The price levels were in sync with current spot levels, undermined by a surplus of Middle East imports and reduced demand from South Korea, Japan and Taiwan, traders said.

Reflecting a bearish market, the spread between second-half August and September contracts stretched to a contango of $4/tonne from $2/tonne early this week, in the wake of Formosa’s 700,000 tonne/year cracker blast, ICIS data showed.

($1 = €0.79)

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By: Felicia Loo

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