10 September 2012 04:22 [Source: ICIS news]
Honam bought two cargoes for delivery to Daesan at a premium of $18.50/tonne (€14.43/tonne) to
Honam previously purchased two cargoes totalling 50,000 tonnes for delivery in the second half of October. The naphtha cargoes fetched a premium of around $11/tonne to
The company has so far bought 275,000 tonnes of spot naphtha for October delivery, compared with 250,000 tonnes of spot purchase made for September delivery because of a lower usage of alternative feedstock, liquefied petroleum gas (LPG), traders said.
“They have a bigger spot requirement for October because of less LPG usage,” one trader said.
Firm spot buying from South Korean crackers have helped drive up premiums amid a tightly supplied market, traders said.
Honam runs a 1m tonne/year cracker in Yeosu and a separate 1.07m tonne/year cracker in Daesan, according to ICIS data. Honam is operating both crackers at 100% capacity, a company source had said.
($1 = €0.78)
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