Taiwan's Formosa Petrochemical Corp has concluded a term deal for naphtha arriving in Mailiao from December 2015 to December 2016 at a discount of US$4-5/ton to Japan quotes on a cost-and-freight (C&F) basis, as per traders in Reuters. The discount was in sharp contrast to the premium of US$3-4/ton Formosa had paid in March 2014 for cargoes delivering in June 2014 to November 2014. It was unclear what other contracts Formosa holds on a C&F basis for cargoes delivering this year. Formosa joins a string of others who have recently completed term talks with sellers.
This include South Korea's YNCC, LG Chem and Lotte Chemical and Malaysia-based Titan as they wanted to ride on the low naphtha prices caused by high supplies and falling crude prices. But spot prices on a C&F basis in South Korea have flipped into premium levels around mid-September after hovering at discounts for over two months due to lower cargoes arriving this month from Europe and the Mediterranean.
05-Oct-15 
