04 July 2008 11:02 [Source: ICIS news]
SINGAPORE (ICIS news)--Japan based Sumitomo Chemical has reduced operation rates at its 415,000 tonne/year Chiba cracker to 96% due to high naphtha values and difficult export situations, a source from the company said on Friday.
"Due to the high naphtha prices and difficult export situations despite the attractive ethylene prices in the market, we have reduced operation rates to 96%," the source added.
The company would ramp up operation rates only after an improvement in the market conditions, the source added.
Ethylene prices were assessed at $1630-1670/tonne CFR (cost and freight) northeast (NE) Asia, an increase of $30/tonne from the week before, according to global chemical market intelligence service ICIS pricing.
Asian naphtha prices had hit a new record high late on Wednesday after BP bought two first half September contracts from Cargill and Vitol at $1,214/tonne CFR Japan.
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