South Korea's KPIC and Honam Petrochemical are on the verge of finalising 2012 naphtha deals at higher prices, as sellers are unwilling to release cargoes at low prices to combat previous sharp losses, as per Reuters. KPIC will likely lock in around 400,000 tons of naphtha for January-December 2012 arrival at premiums of about US$2.50/ton to Japan quotes on a cost-and-freight (C&F) basis. This will be higher vs minus US$1 to premiums of US$1/ton for 250,000 tons for January-December 2011 arrival.
Honam has pegged its bids at US$1/ton discount for cargoes supplied to Yeosu port, and minus 50 cents for supplies delivered to Daesan port. Some sellers are expected to accept Honam's bids and the final volumes the petrochemical maker buys will depend on how many sellers are willing to accept its bids.