Formosa Petrochemical and Honam buy 250,000-300,000 tons of naphtha for H1-April arrival

24-Feb-11

Naphtha markets of Asia have received a much needed boost with buying of 250,000-300,000 tons of naphtha for H1-April arrival by Taiwan's Formosa Petrochemical Corp and South Korea's Honam, as per Reuters. Asia's top naphtha buyer, Taiwan’s Formosa bought 150,000-200,000 tons, at estimated premiums of US$0.50-1/ton to Japan spot quotes on a cost-and-freight (C&F) basis. These premiums are lower when compared to premiums of US$2-2.50/ton paid on Feb. 11 for H2 March to early April cargoes. Honam purchased four cargoes of 25,000 ton at premiums of US$2.75/ton to the same formula- two of these cargoes will be delivered to Daesan and to Yeosu each. The premium is lower compared to the premiums of US$4/ton paid on Feb. 15 for volumes arriving in H2 March.