04 July 2013 09:22 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) has awarded a purchase tender for 100,000-150,000 tonnes of spot naphtha supplies to replenish low inventory levels amid high prices of liquefied petroleum gas (LPG), traders said on Thursday.
The cargoes are scheduled for delivery to Mailiao in the first half of August, they said.
The deals for the cargoes were done at a range, from a discount of 50 cents/tonne to a premium of 50 cents/tonne to Japan quotes CFR (cost & freight) pricing, they said.
FPCC, one of Asia’s dominant spot buyers, is purchasing more naphtha supplies lately because of weak buying activity for the last several weeks, when cracker operating rates were being lowered, traders said.
The company prefers using naphtha as feedstock, as alternative feedstock LPG is commanding far higher prices, they said.
In its previous tender, FPCC bought 150,000 tonnes of naphtha for delivery to Mailiao from the second half of July to August.
The deals for the cargoes were done at levels ranging from parity to a premium of $1/tonne to Japan quotes CFR.
In an earlier tender, FPCC bought 80,000-90,000 tonnes of spot naphtha supply for delivery to Mailiao in July. The deals for the cargoes were done at discount levels ranging from $0.50/tonne to $1.50/tonne to Japan quotes CFR.
($1 = €0.77)
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