FPCC skips Aug naphtha purchase

29 June 2007 05:40  [Source: ICIS news]

SINGAPORE (ICIS news)--Formosa Petrochemical Corp (FPCC) will skip naphtha spot purchasing for August delivery as its requirement will be met from its own domestic refinery, a company source said on Friday.

A recent fire at aromatics maker Formosa Chemicals and Fibre Corp (FCFC) helped free up some of the naphtha feedstock inventories for FPCC’s usage, the source added.

“We would not be buying August spot naphtha as our requirement will be met domestically. We may not even have to buy for September as we need to build our inventories ahead of our No 2 cracker shutdown,” the source said.

FPCC last purchased a July delivery naphtha cargo ahead of its No 3 cracker start-up, its second cargo in more than three months.

Its No 3 cracker, also Asia’s largest, ran at full capacity for the first time since it started up in May.

Traders had expected FPCC’s naphtha feedstock demand to surge after it started its new 1.2m tonne/year cracker in late May, but that had yet to materialize as the Asian market was still swamped with ample spot barrels.

FPCC will shut down its 900,000 tonne/year No 2 cracker for maintenance on 3 September, for about 40-45 days.

By: Nurul Darni
65 6789 4359

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