09 July 2010 09:57 [Source: ICIS news]
“This is not surprising. Many market players placed bids at discounts because sentiment is very weak,” said a trader, who added that a recent armada of Middle East imports had hurt the market.
In its last tender, KPC sold 50,000 tonnes of full-range naphtha and 24,000 tonnes of light naphtha, at a premium of around $9/tonne (€7.11/tonne) to Middle East quotes FOB (free on board), for loading on 13-20 July.
Reflecting the weak market, the spread between second-half August and September naphtha contracts slumped, with the contango widening to $4/tonne from $2/tonne early this week, in the wake of an explosion at Formosa Petrochemical Corp’s (FPC) 700,000 tonne/year cracker, ICIS data showed.
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