LG Chem has likely bought 2 H1-April naphtha cargoes at premiums of US$23.50-24/ton to Japan quotes on a cost-and-freight (C&F) basis. This is a more than 17% increase compared to a previous deal, arriving H2-March, as per Reuters. 25,000 ton of open-spec grade cargo for delivery into Yeosu was bought at around US$23.50/ton and 25,000 tons for delivery into Daesan at about US$24/ton.
The rising premiums can be attributed to tight naphtha supplies caused by refinery maintenance in Saudi Arabia and limited Western cargoes arriving in March amid firm demand. Premiums are likely to soften for cargoes for H2-April delivery as traders are now bringing in more Western cargoes for April arrival in Asia.
22-Feb-12 
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