07 February 2013 02:09 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea's Samsung Total will start using liquefied petroleum gas (LPG) from March as part of its petrochemical feedstock amid high cracker operating rates and expensive naphtha prices, traders said on Thursday.
Its 1m tonne/year Daesan-based cracker, which is currently being operated at full tilt, will be using both naphtha and LPG from March, they added.
Soaring naphtha prices have prompted the partial switch in feedstock, traders said.
Open-spec second-half March contract rose to $1,022-1,025/tonne (€756.30-758.50/tonne) CFR (cost & freight) Japan on 7 February morning, driven up by tight regional supply and strong demand, according to ICIS data.
Meanwhile, Samsung will not seek any spot naphtha, traders said.
Samsung last bought a 25,000 tonne naphtha cargo in the spot market for delivery to Daesan in the first half of March, at a premium of $23-24/tonne to Japan quotes CFR.
($1 = €0.74)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections