S Korea’s LG Chem buys 50,000 tonnes naphtha at higher premiums

28 August 2012 07:04  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s LG Chem has bought 50,000 tonnes of spot naphtha for delivery in the first half of October at higher premiums than its previous purchases for September delivery, traders said on Tuesday.

The open-spec naphtha supply, bound for Yeosu, was sealed at a premium of around $8/tonne ($6.40/tonne) to Japan quotes CFR (cost & freight), they added.

The seller had the option to supply either full-range naphtha or open-spec material for arrival into Daesan at a premium of $9.50/tonne or $10/tonne, respectively, to CFR Japan quotes, traders said.

In its previous spot purchase, LG Chem bought three 25,000 tonne naphtha cargoes for second-half September delivery to Daesan at a premium of $6.50/tonne to Japan CFR quotes.

The naphtha premiums have increased on the back of tighter regional supply, traders said.

LG Chem operates a 930,000 tonne/year naphtha cracker in Daesan and a 1m tonne/year naphtha cracker in Yeosu.

($1 = €0.80)

By: Felicia Loo

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