Petro-Diamond has accepted Kuwait's term naphtha supply for December 2008-November 2009 at $2 a tonne premium to Middle East quotes, on a free-on-board basis, but others are still considering the price which was deemed too high, traders said on Monday.

Traders familiar with Petro-Diamond's operations declined comment.

This came about a week after Japan's largest petrochemical firm Mitsubishi Chemical Corp and Maruzen accepted the premium, which unsettled several of Kuwait Petroleum Corp's (KPC) customers who perceived the price as high when the market was in a glut.

'I believe there are more customers who have already accepted KPC's term, but they are not saying it,' said a trader.

Customers involved in the term include Taiwan's Formosa Petrochemical Corp, CPC Corp, South Korea's YNCC, Hanwha Corp and Japan's Idemitsu Kosan.-Reuters