Taiwan's Formosa Petrochemical Corp has inked a 12 month naphtha term contract starting December at a premium 10% lower than its last deal, as per Reuters. The petrochemicals major will buy a total of around 1 mln tons of naphtha at a premium of about US$2.75/ton above Japan spot quotes on a cost-and-freight (CFR) basis for delivery to Mailiao port. Formosa currently has a six-month contract ending November for 400,000-500,000 tons at a premium of US$3-4/ton to Japan quotes on a CFR basis. Seller details were not available.
The lower premiums were reflective of a buyers' market, caused by a supply overhang that is not being met by any incremental demand, traders said.
12-Sep-14 
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