Formosa Petrochemical, LG Chem buy 200,000 tons naphtha for H1-March

25-Jan-11

Taiwan's Formosa Petrochemical Corp and South Korea's LG Chem have in total bought at least 200,000 tons of naphtha for H1-March delivery, in a market marked by steady demand and tight supplies, as per Reuters. Formosa, Asia's top naphtha buyer, bought around 150,000 tons at premiums of about US$4/ton to Japan spot quotes on a cost-and-freight basis, while LG Chem purchased 50,000-75,000 tons at premiums of about US$6/ton to the same price formula. "These will put pressure on other buyers who have yet to buy their March cargoes," said a trader. Traders added that LG Chem was initially seeking four cargoes totalling 100,000 tons, but failed to buy all the volumes they were seeking, as the market is still grappling with tight supplies, especially for naphtha with high paraffinic content.