Sinopec to resume normal ethylene supply Fri

18 December 2007 04:41  [Source: ICIS news]

BEIJING (ICIS news)--Chinese energy major Sinopec could ramp up cracker operating rates back to its normal output on 21 December, after nearly two months of production cuts, a company source said on Tuesday.

The company lowered cracker operating rates at five subsidiaries in November in line with a government directive to divert naphtha feedstock to produce more petroleum products.

A total 100,000 tonnes of ethylene were lost during the two months, the source said, adding that this was equivalent to 300,000 tonnes of derivatives.

However, the cuts did not have a large impact on the market as credit controls towards the end of the year tightened liquidity at companies and greatly reduced buying, he said.

Instead, it tightened supply in the lull market and propped up prices, he added.

Sinopec could resume normal production at its chemical plants on 21 December, but this would depend on the petroleum supply in China, the source said.

By: Florence Tan
+65 6780 4359

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