ROC mulls lower op rates at Thai naphtha cracker

07 March 2008 04:37  [Source: ICIS news]

SINGAPORE (ICIS news)--Thailand-based Rayong Olefins (ROC) may reduce operating rates at its naphtha cracker over the next month due to rising naphtha prices, a company official said late on Thursday.

“If naphtha prices continue to rise, the margins for eythlene, propylene and other products will be much lower compared to costs,” the official, who declined to be named added.

The SCG-subsidiary's Rayong-based cracker, Thailand’s largest, has an ethylene capacity of 800,000 tonnes/year and is currently running at full capacity.

Declining to state the possible rate of reduction, the official said operating rates may be reduced gradually over the coming month.

Operating rates may be lowered only after considering various factors like the number of customers the company was already committed to supply, and any possible impact on propylene production, the official added.

“We need to finalise feedstock plans, otherwise we will face a tank top problem. It depends on our management decision,” he said.

 Naphtha prices opened higher on Friday on overnight crude gains with second-half April prices pegged at $905.50-908.50/tonne (€588.58-590.53/tonne) CFR (cost and freight) Japan.

($1=€0.65)

By: Arujnee J Ram
+65 6780 4359

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