Lotte Chemical Titan is seeking up to 120,000 tons of naphtha in a one-year contract starting April 2014, as per Reuters. Titan's purchase tender came at a time when naphtha spot premiums have started to weaken due to upcoming cracker maintenance in Japan, which would temporarily wipe out naphtha demand.
At the start of the week, LG Chem paid US$7.50/ton premium to Japan quotes on a cost-and-freight (C&F) basis for a cargo scheduled for H1-March delivery, making that the lowest premium seen in South Korea since October 21. Titan, which operates a 720,000 tpa cracking complex, has two existing one-year contracts, each for about 200,000 tons. One of the contracts, sealed at a premium of US$2.95/ton to Japan quotes on a C&F basis, pegged to a 30-day pricing formula, will expire in June 2014. The other contract, which expires in September 2014, was sealed at a premium of 50 cents a tonne, but pegged to a 45-day pricing formula. Titan's new tender will close on February 17, with offers to stay valid until February 21.
13-Feb-14 
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