03 November 2010 04:01 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Zhenhai Refining & Chemical Co (ZRCC) will delay the one-week turnaround of its cracker at Ningbo in Zhejiang province for a second time to December, amid strong downstream markets, a company official said on Wednesday.
The date of the shutdown had yet to be determined, the official said, adding that the 1m tonne/year plant was currently operating at full capacity.
Market sources told ICIS the strong performance in the downstream monoethylene glycol (MEG) market was a key reason for the delay.
Chinese domestic MEG prices were assessed at yuan (CNY) 7,750–7,800/tonne ($1,160–1,168/tonne) ex-tank at the close of business on Tuesday, up by CNY100/tonne week on week, ICIS data showed.
The spread between MEG and ethylene had exceeded $371/tonne (€263/tonne) on Tuesday, up from the minimum spread of $100/tonne required for producers to break even.
Meanwhile, ZRCC was offering 10,000 tonnes of November ethylene cargoes for export on a formula-pricing basis, traders said.
Additional reporting by Becky Zhang
($1 = CNY6.68 / $1 = €0.71)
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