SINGAPORE: Malaysia's Titan Chemicals has awarded its first cost-and-freight (CFR) term tender to buy naphtha for April 2011 to March 2012 delivery at about $15.00 a tonne above Japan quotes, traders said on Monday.
The firm had previously paid similar levels for more than 250,000 tonnes of CFR term cargoes bought through private negotiations.
But it changed its procurement method after it was acquired by South Korea's Honam Petrochemical last year for more than $1 billion.
South Korean companies such as LG Chem, KPIC and Samsung Total usually buy their CFR term cargoes through tenders.
Titan also has free-on-board (FOB) contracts with Gulf suppliers ADNOC and Saudi Aramco, and buys spot cargoes when necessary.
It has an outstanding spot tender to buy up to 50,000 tonnes of naphtha for second-half April arrival, which traders said should conclude by late Monday.
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