Premium by LG Chem is the highest paid by a South Korean buyer since May 3 for H2 October naphtha

16-Sep-11

LG Chem has paid premiums of US$6.50-7/ton for H2 October naphtha volumes to Japan spot quotes on a cost-and-freight (C&F) basis. This is the highest premium paid by a South Korean buyer since May 3, as per Reuters. It is likely that the petrochemical maker has bought two cargoes of about 25,000 tons each to be delivered to Yeosu and the other to Daesan. Sentiments have firmed up in the naphtha market due to a lack of European exports to Asia amid reduced September exports from India at less than 800,000 tons due to healthy domestic demand and refinery maintenance. Volumes from India were below imonthly average from January-August at 910,000 tons.