06 January 2010 08:11 [Source: ICIS news]
SINGAPORE (ICIS news)--Taiwan’s Formosa Petrochemical Corp (FPC) is running its three naphtha crackers at Mailiao at reduced rates of around 90% due to shortage of feedstock naphtha, a source close to the company said on Wednesday.
"It looks like there will not be any ethylene exports even in March," the source said in Mandarin.
The cracker production cuts, which started in late-December, were expected to stay in place at least for this month, the source added.
Formosa last sold an ethylene cargo for January lifting at above $1,100/tonne (€759/tonne) FOB (free on board) Mailiao in December, the source said.
Ethylene spot prices were firm on Wednesday amid tight supply in the region. Selling ideas were heard at $1,300/tonne CFR (cost and freight) NE (northeast) Asia but buying ideas were capped in the low $1,200/tonne CFR NE Asia levels, market players said.
Formosa’s three crackers have a combined ethylene production capacity of 2.93m tonnes/year.
($1 = €0.69)
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