S Korea's Honam buys 25,000 tonnes naphtha for H2 Nov at discount

31 October 2011 04:21  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s Honam Petrochemical has bought by tender 25,000 tonnes of naphtha for delivery into Yeosu in the second half of November at a negative differential, amid a bearish Asian market, traders said on Monday.

Honam bought the cargo at a discount of $1.50/tonne to Japan quotes CFR (cost and freight), compared with a premium of $1.00-1.50/tonne fetched in the company's previous spot purchase of 50,000 tonnes for delivery in the second half of November.

Asia’s naphtha intermonth spread between the first-half December and the first-half January contracts widened to a contango of $2/tonne on Friday’s close, from a contango of $1.50/tonne on Thursday because of surplus and falling prices for key downstream petrochemical products, ICIS data showed.

($1 = €0.71)

For more on naphtha, visit ICIS chemical intelligence

By: Felicia Loo

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