APIC ’08: Maruzen, YNCC may cut cracker op rates

28 May 2008 12:34  [Source: ICIS news]

SINGAPORE (ICIS news)--Maruzen Petrochemicals and Yeochun Naphtha Cracking Center (YNCC) may cut production rate at their respective crackers if naphtha prices continue moving towards a negative cracking margin, sources from the companies said on Wednesday

"After the current turnaround on our cracker, we have already started considering restarting the cracker at a reduced operation rate on 22 June," the source from Maruzen said on the sidelines of the Asia Petrochemical Industry Conference (APIC).

YNCC would be unable to reduce operating rates at its crackers immediately as it had just resumed operations after the recent unexpected shutdowns due to power outages. However, once the 17,000 tonnes of delayed ethylene cargoes were sorted out, the company may reduce its operation rates, the YNCC source said in Korean.

Asian naphtha prices closed softer on Wednesday with price indications for first half July cargoes pegged at $1,085.50-1,086.50/tonne CFR (cost and freight) Japan.

Other cracker operators who have reduced their operating rates are SK Corp in Sout Korea, Chandra Asri in Indonesia, CPC in Taiwan and PCS in Singapore.

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By: Brian Myung
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