28 April 2008 03:49 [Source: ICIS news]
SINGAPORE (ICIS news)--Taiwanese state refiner CPC Corp will continue to run its three crackers in Lin Yuan and Kaohsiung at reduced rates of 90% on high naphtha costs, a company source said on Friday.
“The crackers will run indefinitely at reduced rates as naphtha prices are too high,” he added as naphtha hit a fresh record of above $980/tonne CFR (cost and freight) Japan on Wednesday for June deliveries.
Consequently, spot ethylene prices have also surged on tightened supply due to regional cracker cutbacks and high naphtha costs. Spot ethylene was posted at $1,400/tonne FOB (free on board) Korea this week as desperate buyers snapped up the limited number of spot cargoes in the market.
CPC runs three crackers - the 230,000 tonne/year No 3 cracker, the 385,000 tonne/year No 4 cracker and the largest 500,000 tonne/year cracker No 5. All three crackers were said to have had rate cuts of around 10% since the end March.
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