Honam Petrochem buys 50,000 tons naphtha for H1-October delivery at discount

03-Sep-10

Honam Petrochemical has purchased around 50,000 tons of naphtha for H1-October delivery. Deals were concluded for open-spec grade at a discount for the first time in about two weeks. As per Reuters, the parcels were bought from sellers who have the options to supply either full-range or open-spec grade at a premium of around US$1.50/ton to Japan spot quotes on a cost-and-freight (C&F) basis, or - 50 cents/ton C&F. Naphtha cracks have moved in the opposite direction, rising to a three-session high at US$110/ton premium. Stronger cracks could be a result of crude losses, as demand is unlikely to grow. This was because naphtha crackers in South Korea are already running at their maximum rates, capping their feedstock requirement.