Chandra Asri to keep 80% cracker rate in May

11 April 2008 04:47  [Source: ICIS news]

SINGAPORE (ICIS news)--Chandra Asri, Indonesia’s sole cracker operator, will keep operating rates at its 620,000 tonnes/year cracker at a reduced level of around 80% in May due to high feedstock costs, a company source said on Friday.

The naphtha cracker located at Merak, west Java, had been operating at reduced rates for several weeks due high naphtha costs amid relatively soft ethylene prices.

Despite a recent rally in spot ethylene prices, which saw a surge of over $100/tonne to $1,265/tonne CFR (cost and freight) Indonesia, the cracker operator said that current ethylene prices were still below break-even levels.

Naphtha prices had hit a fresh record high on Thursday at $931/tonne CFR Japan for June contract on the back of firm crude prices.

Chandra Asri supplies ethylene to Indonesian customers such as vinyls maker Asahimas Chemical and Sulfindo Adiusaha via pipeline.

The company also runs a 300,000 tonne/year polyethylene (PE) plant in Anyer and supplies propylene to polypropylene (PP) maker Tri Polyta.

By: Steve Tan
+65 6780 4359

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