01 August 2012 09:19 [Source: ICIS news]
SINGAPORE (ICIS)--South Korean producer Yeochun NCC (YNCC) has tendered to buy term naphtha supply of unspecified volume for September 2012 to August 2013 delivery, traders said on Wednesday.
The tender will close on 3 August, while offers will remain valid up till 7 August, they said.
The volume, which will be fixed at the closing of the tender, is subject to discount/premium, supply availability, margins and market outlook, traders said.
Based on current market conditions, most traders agree that a discount of low-single digits to Japan CFR (cost and freight) quotes would apply to the term supply being sought by YNCC.
YNCC has a one-year contract for 800,000 tonnes of naphtha supply for January-December 2012 delivery into Yeosu. Its last term purchase of the open-spec material under the existing contract was at a discount of 50 US cents to Japan CFR quotes.
The volume in the existing contract is 20% less than the company’s previous one-year contract in 2011, market players said.
On top of the term supply, YNCC’s monthly spot intake is usually three to four cargoes, they said.
($1 = €0.81)
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