SK Energy runs cracker at 75% on high costs

14 March 2008 10:40  [Source: ICIS news]

SINGAPORE (ICIS news)--South Korea's SK Energy will keep output at its No 1 naphtha cracker in Ulsan at 75% of capacity on the back of surging naphtha feedstock costs, a source close to the company said on Friday.

  

The company’s 190,000 tonne/year ethylene plant at the same site will continue to run at 75% of capacity in April, after production was cut in early March due to high naphtha costs.

 

Subsequently, ethylene production loss at Ulsan was forecast to total about 4,000 tonnes/month.

 

Meanwhile, naphtha prices continue bubbling around $900/tonne CFR (cost and freight) Japan, while spot ethylene prices have held steady around $1,200/tonne CFR NE Asia (northeast Asia).

 

SK Energy’s larger No 2 cracker in Ulsan produces 650,000 tonnes/year of ethylene.

By: Steve Tan
+65 6780 4359

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