S Korea’s SK Energy to cut No 1 naphtha cracker rate in November

21 October 2011 08:33  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s SK Energy plans to cut the operating rate of its 190,000 tonne/year No 1 naphtha cracker in Ulsan to 70% of capacity next month because of weak market conditions, a company source said on Friday.

The cracker is running at 80% of capacity this month, the source said.

SK Energy will continue to run its 690,000 tonne/year No 2 cracker at the same site at full rates, he added.

Cracker operators in Asia are facing squeezed margins because of a sharp correction in olefins prices, while feedstock naphtha prices remain high.

Ethylene spot prices were traded at $1,030-1,050/tonne (€752-767/tonne) CFR (cost & freight) NE (northeast) Asia on Friday, $10/tonne lower than on 20 October, according to ICIS pricing.

($1 = €0.73)

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By: Peh Soo Hwee
+65 6780 4359

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