Honam Petrochemical has bought around 50,000 tons of H1-November naphtha at lower premiums, indicating a softer market, as per Reuters. Premium of US$4/ton has been paid by Honamto Japan spot quotes on a cost-and-freight for a 25,000 ton cargo arriving in Daesan and about US$3.75/ton for similar volumes arriving in Yeosu. Last week, some buyers in South Korea had paid US$6-7/ton for H1-November cargoes, but these deals were done through private negotiations. Honam's buy tender is the first in at least two weeks. Competition amongst sellers to win Honam's tender against the limited spot buying interest has led to the lower-than-expected price. Closure of Shell’s 500,000 bpd refinery in Bukom Island, Singapore, has had little impact on naphtha markets and failed to lift sentiments as the plant is not export-oriented where naphtha is concerned. The shutdown impact from Shell is more on distillates and gasoline rather than on naphtha.
05-Oct-11 
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