South Korea’s YNCC buys H2 Sep naphtha at lowered premium

09 August 2012 03:59  [Source: ICIS news]

SINGAPORE (ICIS)--South Korean producer Yeochun NCC (YNCC) has bought around 75,000 tonnes of naphtha for delivery in the second half of September through tender, traders said on Thursday.

The cargoes, which would arrive in Yeosu, fetched a premium of $5.00/tonne to Japan quotes CFR (cost & freight). The price fell, compared with the $8.50/tonne premium YNCC paid for its purchase of 100,000 tonnes of spot naphtha for August delivery.

However, YNCC has yet to award a term naphtha supply of unspecified volume for September 2012 to August 2013 delivery, the traders added. Its tender closed on 3 August, with validity till 7 August.

YNCC has a one-year contract for 800,000 tonnes of naphtha supply for January-December 2012 delivery to Yeosu. Its last term purchase of the open-spec material under the existing contract was at a discount of $0.50/tonne to Japan CFR quotes.

On top of the term supply, the monthly spot intake for YNCC is typically three to four cargoes.

The South Korean producer is currently operating its 857,000 tonne/year No1, 578,000 tonne/year No 2 and 465,000 tonne/year No 3 crackers at Yeosu at 100% capacity, according to the traders.

By: Felicia Loo

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