Honam Petrochemical pays high premium for 50,000 tons naphtha for H2 February arrival

07-Jan-11

South Korea's Honam Petrochemical has bought at least 50,000 tons of naphtha for H2-February arrival at high premiums due to tight supplies, as per Reuters. Premiums of around US$12-14/ton were paid to Japan spot quotes on a cost-and-freight basis. These are higher than the average premiums for H1 February cargoes arriving in South Korea at US$9.60/ton on a C&F basis, and cargoes for January arrival at US$8.42/ton on C&F basis. Despite an influx of Western naphtha arriving in Asia since December, the bulk of the cargoes were of heavier grade, which were more suitable for aromatics production rather than for cracking.