Taiwan’s Formosa Plastics suspends propylene offers after fire

01 August 2011 10:57  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Formosa Plastics Corp (FPC) has stopped offering spot propylene cargoes after a fire broke out at the company’s Mailiao petrochemical complex on 30th July, sources close to the company said on Monday.  

With two fires in one week and the sixth major plant accident over the past year, the local government might require FPC to carry out an extensive shutdown of its Mailiao complex for safety checks, market sources said.  

The Taiwanese government may also require FPC to ensure that it can fulfil domestic requirements for propylene before it can resume exporting, market source said.

In response to the supply disruptions, traders in China and Korea have hiked their selling indications by $80-100/tonne (€55-69/tonne) to $1,630-1,650/tonne CFR (cost & freight) NE (northeast) Asia for end-August shipments.

However, buyers said the offers were very high.

($1 = €0.69)

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By: Chan Jingyi
+65 6780 4359

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