S Korea’s Honam Petrochemical buys one-year term naphtha

25 June 2012 07:46  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s Honam Petrochemical has settled its purchase for a one-year term contract of naphtha supply at slight discounts to small premiums, depending on port destinations, a source close to the company said on Monday.

Honam opened its tender to buy term naphtha supply for delivery in July 2012 to June 2013 on 19 June and was closed on 20 June with bids valid up till 22 June.   

Cargoes heading to Daesan were closed at a premium of $0.50/tonne (€0.40/tonne) to Japan CFR (cost and freight) quotes, while parcels heading to Yeosu were concluded at a discount of around $0.50/tonne to Japan CFR quotes.

“This settlement level was within some of our company’s expectations,” the source said.

The source added that the company is still defining the exact loaded volumes per month with its sellers.

After closing the tender, Honam remains as an active spot buyer in the market.

“As long as our cracker is still running at high rates, we have to buy spot even if we have term contracts,” he said.

($1 = €0.80)

By: Ong Sheau Ling
+65 6780 4359

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