06 January 2011 09:02 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) plans to cut runs at its three naphtha crackers in Mailiao as soaring feedstock prices eat into derivatives, industry sources said on Thursday.
The crackers, which can produce a total of 2.93m tonnes/year of ethylene, are operating at 100%, they added.
“There is hardly any margin for the crackers,” said the source.
Company officials could not be immediately reached for comment. It was not known when the operating rates would be reduced.
Meanwhile, ethylene prices in Asia were unchanged on Wednesday at $1,180-1,220/tonne (€897-927/tonne) CFR (cost & freight) NE (northeast) Asia, ICIS data showed.
But, on the other hand, naphtha prices marched higher to close at $885.50/tonne CFR Japan from $882.25/tonne last week, buoyed by strong crude futures at above $90/bbl, the data showed.
The naphtha crack spread soared to $186.35/tonne versus Brent crude on Wednesday, the highest in nearly three years, according to ICIS.
“Naphtha seems too expensive,” another source added.
($1 = €0.76)
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections