UpdateSouth Korea’s YNCC cancels term naphtha tender on high offers

21 August 2012 08:27  [Source: ICIS news]

SINGAPORE (ICIS)--South Korean producer Yeochun NCC (YNCC) has cancelled a term tender to buy naphtha supplies for September 2012 to August 2013 delivery because of of high offers, traders said on Tuesday.

YNCC sought to buy the supplies at a premium of $1.50/tonne to Japan quotes CFR (cost and freight). However, the term offers stood at a premium of $5.00-6.00/tonne to Japan quotes CFR.

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.

YNCC is expected to buy more naphtha cargoes in the spot market, traders said.

In the past, YNCC used to buy three to four spot cargoes every month in addition to the term supply, they added.

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, traders said.

($1 = €0.81)

By: Felicia Loo

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