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 ?xml:namespace>
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)
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