Naphtha timespreads rebounded to a one-and-a-half-week high after physical demand for January cargoes began emerging from North East Asian cracker operators, as per Reuters.
South Korea's LG Chem was heard seeking H1-January cargoes early on Thursday while rival petrochemical maker, Honam Petrochemicals, made a larger-than-usual purchase of January shipments on Wednesday. Honam purchased up a total of 125,000-150,000 tons of H1-January naphtha shipments at a three-month-low premium of US$9.50/ton to Japan quotes on a cost-and-freight (C&F) basis. The larger-than-usual volume purchase could be to stock up for an expected increase in plastics demand ahead of the Lunar New Year festivities in February next year. Others opine that Honam could be buying more shipments due to the low premiums.
Reflecting the firmer sentiment for physical plastics demand ahead of the Lunar New Year in February, the January/February timespread contract surged US$1.25/ton to its highest since Nov. 19, according to Reuters data. The February/March timespread contract was similarly firmer in early trade.
30-Nov-12 
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