S Korea’s Samsung Total buys 50,000 tonnes naphtha for H1 October

28 August 2012 04:16  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea's Samsung Total has bought 50,000 tonnes of open-spec naphtha supply for delivery in the first half of October, after skipping spot imports for September delivery, traders said on Tuesday.

Rising propane prices make naphtha a more attractive option for Samsung Total, they said.

The cargoes were done at a premium of $9/tonne (€7/tonne) to Japan quotes CFR (cost and freight), they added.

The premiums rose sharply from the purchases made by South Korea’s Honam Petrochemical in the second half of last week.

Honam Petrochemical bought four naphtha cargoes totalling 100,000 tonnes for delivery into Yeosu and Daesan in the first half of October at a premium of around $2/tonne to Japan quotes CFR.

Traders said tighter regional supply has helped shore up premiums in spot trades.

Samsung Total did not buy spot naphtha for September delivery because its 1m tonne/year Daesan-based cracker was using alternative feedstock, like liquefied petroleum gas, and relying on term naphtha supply then.

The company last bought three cargoes totalling 75,000 tonnes of spot naphtha supply for second-half August deliveries.

($1 = €0.80)

By: Felicia Loo

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