05 June 2012 03:56 [Source: ICIS news]
The three 25,000-tonne cargoes were settled at a premium of $3.00-4.00/tonne (€2.40-3.20/tonne) to
The low premium was a result of weak energy values and an overall softness in downstream petrochemical sector, sources said.
The origins of the cargoes were not immediately known because the cracker operator bought them from traders.
“Depending on the market conditions, we may need to buy additional first half of July loading since the cracker is still running at 95-100%,” he said.
Honam operates a 1.07m tonne/year Daesan-based cracker and a 1m tonne/year Yeosu-based cracker.
The cracker operator may not renew its contract with Abu Dhabi National Oil Company (Adnoc) if the premium is not revised lower, sources said.
“Some buyers have already accepted [the term contract], with conditions such as a reduction of volume and adjustment of delivery months to later dates such as December or next year,” he said.
($1 = €0.80)
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