CPC to shut No.3 cracker in mid-Mar on poor economics

06 March 2009 03:34  [Source: ICIS news]

SINGAPORE (ICIS news)--Taiwan's state cracker operator, Chinese Petroleum Corp (CPC), plans to shut its 230,000 tonne/year No.3 naphtha cracker in Linyuan around mid-March for at least a month due to poor economics, a company source said on Friday.

“Naphtha prices are too high,” said the source in Mandarin.

Benchmark second half April naphtha spot prices were traded around $417/tonne (€334/tonne) CFR (cost and freight) Japan on Thursday while ethylene was notionally stable at $630-650/tonne CFR NE (northeast) Asia, according to global chemical market intelligence service ICIS pricing. The spread of around $200/tonne was not seen to be attractive enough for some cracker operators in the region.

The company will run its other two crackers at 100% from the present 80-90% to compensate for the production loss from the No.3 unit, the source added.

CPC operates a 385,000 tonne/year No.4 cracker in Linyuan and a 500,000 tonne/eyar No.5 cracker at Kaohsiung.

The No.3 cracker is still on track to be shut for 40-45 days of scheduled maintenance starting 14 November, the source said.

($1 = €0.80)

To discuss issues facing the chemical industry go to ICIS connect 

By: Peh Soo Hwee
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly