S Korea’s Honam buys naphtha cargo at a discount amid ample supply

17 August 2012 05:54  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s Honam Petrochemical has bought a 25,000 tonne naphtha cargo for delivery into Yeosu in the second half of September at a discount amid ample supply in the market, a company source said on Friday.

The cargo was done at a discount of 50-75 cents/tonne (€40-61 cents/tonne) to Japan quotes CFR (cost and freight), 30 days prior to delivery, he added.

The company previously bought three naphtha cargoes totalling 75,000 tonnes for September loading at premiums of $5.00-6.50/tonne.

Supplies of naphtha could get tighter in the fourth quarter of this year when less arbitrage material is expected despite the abundance of supply in the prompt market currently, traders said.

Honam is currently operating its two crackers at 100% of capacity. The company runs a 1m tonne/year cracker in Yeosu and another 1.07m tonne/year cracker in Daesan.

By: Felicia Loo

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