Taiwan’s Formosa Petrochemical Corp has inked a 12-month naphtha term contract starting December at a premium that is around 10 percent lower than its last deal, trade sources said on Thursday.
The petrochemicals producer will buy a total of around 1 million tonnes of naphtha at a premium of about $2.75 a tonne above Japan spot quotes on a cost-and-freight (CFR) basis for delivery to Mailiao port.
Formosa currently has a six-month contract ending November for 400,000-500,000 tonnes at a premium of $3 to $4 a tonne to Japan quotes on a CFR basis.