Indian Oil runs PE, PP units at reduced rates on cracker shutdown

03 June 2011 08:20  [Source: ICIS news]

SINGAPORE (ICIS)--State-owned Indian Oil is running its polyethylene (PE) and polypropylene (PP) facilities at Panipat at reduced rates as the company’s upstream naphtha cracker has been shut down for a brief maintenance, a company source said on Friday.

Indian Oil is operating its 600,000 tonne/year PP unit and 650,000 tonne/year high density PE (HDPE)/linear low density PE (LLDPE) plants at 70%, the source said.

The company is expected to restart its upstream 857,000 tonne/year naphtha cracker on 6 June.

“The demand in the local PE and PP downstream sector is still looking bad and prices are on a downtrend. We have to reduce our operating rates as a result to prevent a build-up in inventories,” the source added.

Domestic prices in India have been adjusted to be at Indian rupee (Rs) 2/kg (4 cents/kg) lower for all PP grades and up to Rs2/kg for all PE grades, with effect from 2 June.

($1 = Rs44.8)

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By: Ong Sheau Ling
+65 6780 4359

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