06 December 2012 07:43 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s Honam Petrochemical has bought 50,000 tonnes of spot naphtha supply for delivery to Daesan in the first half of January amid full cracker operating capacity, traders said on Thursday.
The deals for the cargoes were done at a premium of $12.50/tonne (€10/tonne) to Japan quotes CFR (cost & freight), they added.
In its previous spot purchase, Honam bought 100,000 tonnes of spot naphtha supply for delivery to Yeosu and Daesan in the first half of January, at a premium of $9.50/tonne (€7.30/tonne) to Japan quotes CFR.
The market premiums rebounded slightly as there will be less arbitrage material in January, traders said.
Meanwhile, Honam is operating its 1m tonne/year cracker in Yeosu and a separate 1.07m tonne/year cracker in Daesan at 100% capacity, they added.
“So long as Honam can cover variable cost in entirety, they will keep running at full capacity,” one trader said.
($1 = €0.77)
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