Samsung Total Petrochemicals is seeking naphtha

(Reuters) -- South Korea's Samsung Total Petrochemicals is seeking naphtha for August 2011 to June 2012 delivery as its current term contract is about to end, traders said on Friday. The buyer is seeking open-spec naphtha with a maximum mercury content of 10 parts per million (ppm) in a tender which closes on June 10.

Samsung Total has a total of about 600 KT of naphtha in its current contract which spans from September 2010 to August 2011.

The price of the existing contract, inked in July last year, was minus USD 4.00 a tonne to Japan spot quotes on a cost-and-freight (C&F) basis.

Naphtha sentiment has slumped since May 12 after Asia's top naphtha buyer Formosa shut a cracker following a fire at its pipeline. The weak market will be favourable to buyers, as inter-month spreads, an indication of how much buyers will pay for spot cargoes, flipped into a discount for the first time in 7-1/2 months on May 31.

MRC

(Plastemart) -- Four units of Formosa Plastics Group's have seen a decline in their combined sales for May, largely because of production suspension in several plants at the group's complex in Mailiao, following two fires during the month, as per ACN. The two fires took place in the group's Mailiao complex on May 12 and May 18 respectively, prompting an immediate halt to production in the affected plants as officials investigated the cause of the fires.

In addition, the companies have attributed the fall in sales for May to slowing demand from China, which reflected mainland authorities' constant measures to tighten liquidity to combat inflation. In early June, Yunlin County ordered a phased closure of five of the complex's plants in two months due to safety concerns. The combined revenue of Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals and Fibre Corp. and Formosa Petrochemical Corp. fell 10.8% in May from a month ago to USD 4.4 bln).

MRC

(Arabian Oil and Gas) -- Saipem and the Japanese company, Chiyoda Corporation, have reached a cooperation agreement to develop onshore Liquefied Natural Gas (LNG) and Upstream projects. According to the agreement, Saipem and Chiyoda will collaborate on an exclusive basis as an integrated JV to develop onshore LNG and Gas Treatment projects worldwide, excluding certain specific regions, as well as Upstream projects on a case by case basis.

Chiyoda Corporation is one of the largest global engineering companies operating in the field of onshore LNG plants, as well as upstream and downstream EPC projects. It has an impressive track record and expertise, and record especially in the field of onshore LNG plants.

Through the agreement, the two companies will be able to integrate their own skills developed in Oil & Gas contracting and, in particular, those in the gas monetization chain, to tackle the rapidly expanding LNG and Upstream sector and other strategic markets.

MRC

MOSCOW (MRC) -- Under the pressure of declined contract price for propylene, European producers considerably decreased export prices for polypropylene (PP) in June, according to ICIS-MRC Price Report. Yet in May, some suppliers were forced to reduce prices by EUR 10-20/mt, depending on PP grade.
Over the month, export prices for PP in Europe were reduced, on average, by EUR 50-80/mt. Prices for homopolymer propylene in June were decreased to EUR 1.240 - 1.300/mt, FCA.

Current strengthening of euro against dollar (1.463 on Monday) was partially levelled by decreased export prices for CIS markets.

MRC

(Reuters) -- Formosa Petrochemical Corp may reschedule planned maintenance at the largest of its three naphtha crackers to second-half August from early September if some its downstream units are shut for an extended time following a fire at a pipeline on May 12, its spokesman said on Thursday. "The situation is still unclear because it really depends on the status of the downstream units," he said. "If the ethylene feedstock cannot be soaked up, we will forward the maintenance of the No. 3 cracker by two weeks."

Formosa, Asia's top naphtha buyer, operates three crackers, of which its No. 3 unit has a nameplate capacity of 1.2 million tpy.

MRC