South Korea’s LG Chem buys 50,000 tonnes naphtha for H1 Nov

27 September 2012 03:39  [Source: ICIS news]

SINGAPORE (ICIS)--South Korean chemical company LG Chem has bought 50,000 tonnes of naphtha for delivery in the second half of November, traders said on Thursday.

The deal for the Yeosu-bound cargo was done at a premium of $10.50/tonne (€13.50/tonne) to Japan quotes CFR (cost & freight), while the deal for the Daesan-bound cargo fetched a premium of $11.50/tonne to Japan quotes CFR, they added.

The premiums were in tandem with the amount other South Korean operators paid for their spot naphtha purchases in the week, traders said.

While the premiums have softened in the wake of rising supply, prices have stabilised because of continuous buying activity from northeast Asian cracker operators, the traders added.

In early September, LG Chem purchased a similar volume of spot naphtha for delivery in the second half of October at premiums of $18.50/tonne and $19.25/tonne to Japan quotes CFR.

($1 = €0.78)

By: Felicia Loo

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