26 May 2011 11:04 [Source: ICIS news]
SHANGHAI (ICIS)--Chinese petrochemical major Sinopec may cut its polyethylene (PE) output by around 80,000 tonnes in June, as its margins have been squeezed by lower domestic prices and high crude oil prices, a source close to the company said on Thursday.
This will translate to around a 25% drop in its monthly PE output, based on its estimated average PE output of 300,000 tonnes/month in the first quarter of this year, according to Chemease, an ICIS service in ?xml:namespace>
Sinopec cut its PE output by around 30,000 tonnes in May for the same reason.
Locally produced film grade linear low-density PE (LLDPE) was trading at yuan (CNY) 10,000/tonne ($1,541/tonne) on Thursday, down by around CNY500/tonne from 20 May, ICIS data showed.
“Any production cut in June would be seen as a positive development for the market,” said a trader in east
($1 = CNY6.49)
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