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S.Korea’s KPIC resumes naphtha spot purchase, buys at discounts -sources

Thursday, 13 June 2019 | 12:00

Korea Petrochemical Industries Co Ltd (KPIC) has resumed spot naphtha purchases after skipping buying cargoes for at least two months due to sufficient inventories, industry sources who closely track deals said.

KPIC bought between 22,500 and 32,500 tonnes of full-range naphtha with a minimum paraffin content of 77 percent for first-half of August delivery to Onsan at a discount in the single-digit a tonne level to Japan quotes on a cost-and-freight (C&F) basis, the sources said.

Companies do not typically comment on such deals.

The petrochemical maker, which operates an 800,000 tonnes per year naphtha cracker, was last seen with purchase tenders for March cargoes which it bought at premiums.

It was unclear if it had bought any spot cargoes for April and May, but the industry sources said KPIC had skipped purchases for June and July as it had enough cargoes from term suppliers.

Asia’s naphtha has buckled under the weight of supplies and margins flipped into a discount last week for the first time in more than a decade.
Source: Reuters (Reporting by Seng Li Peng; Editing by Joseph Radford)

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