Honam Petrochemicals buys 50,000 tons for H1-July

09-Jun-12

South Korea's Honam Petrochemical has bought about 50,000 tons of naphtha for H1-July arrival, with prices seen at parity to a slight premium to Japan spot quotes, lower than what YNCC paid two days ago, as per Reuters. As per a trader, prices are finally flat after months of being in premiums. The market is sinking fast and buyers are in no hurry to commit. Around 25,000 tons of naphtha was bought for H1-July arrival at Yeosu at parity, and similar volumes for Daesan at a slight premium. Both prices were concluded on a cost-and-freight (C&F) basis formula. Asia is seeing naphtha supplies rise as demand falls on cracker run cuts to combat weak petrochemical margins.