Taiwan's Formosa may seek spot naphtha supply for October

26 July 2012 10:44  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) may seek naphtha supply for October delivery to Mailiao, after putting spot purchases on hold since May, traders said on Thursday.

FPCC, Asia’s largest spot naphtha buyer, will skip spot buying for September delivery as it is covered with alternative cheaper feedstock propane, they said.

However, a source close to FPCC told ICIS that it is not confirmed whether FPCC will make spot naphtha purchases for October.

FPCC put spot purchases on hold since May as the naphtha prices declined significantly from late April because of weak demand and oversupply.

In addition, an outage at the producer’s Mailiao complex in June and ongoing and upcoming scheduled turnarounds have reduced FPCC’s appetite for spot naphtha, traders said.

“If FPCC returns to buy, [spot] prices will be better supported,” a Singapore-based trader said.

Author: Sheau Ling Ong

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