Naphtha prices in Asia retreated on Monday to reach a two-session low of US$824.50/ton, but margins extended gains to hover around a seven-week high of US$81.70/ton premiums on firmer demand, as per Reuters.
Honam Petrochemical bought a 25,000 ton cargo for H2-August arrival at Yeosu and another 25,000 tons for the same arrival period at Daesan, both at estimated average premiums of about US$4/ton to Japan quotes on a cost-and-freight (C&F) basis. South Korean buyers did not fully replenish their stocks for H1-August. The healthy demand is expected to stay as more are expected to come forward to seek H2 August cargoes.
Crackers in the region have increased run rates, firming up market demand, but supply is lower. Buyers were likely to receive lower volumes than they had expected from suppliers. Under the usual contract terms, sellers have the option to provide 5-10% more supply, or 5-10% less volume, depending on crude prices and fundamentals.
10-Jul-12 
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