SK Energy to cut No 1 cracker op rate to 75%

26 May 2008 04:29  [Source: ICIS news]

SINGAPORE (ICIS news)--SK Energy will be reducing the operating rate of its No 1 cracker in Ulsan, Korea, a source from the company said on Monday.

“Naphtha prices are still increasing but the cracking margin is not as good due to the lower ethylene prices. We will decrease the operation rate of our No 1 cracker to 75%,” the source said.

The company will reduce operation rates for its 190,000 tonne/year No 1 cracker but not for its 650,000 tonne/year No 2 cracker, also located in Ulsan.

Feedstock naphtha prices opened lower on Monday with price indications pegged at $1,108.50-1,111.50/tonne CFR (cost and freight) Japan for first half July, second half July at $1,105.50-1,108.50/tonne.

Ethylene prices were assessed at $1,400-1,420/tonne FOB (free on board) Korea and $1,460-1,500/tonne CFR NE Asia.

Other crackers that have reduced their operation rates recently include Chandra Asri in Indonesia and CPC in Taiwan.

By: Brian Myung
65 6780 4359

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