South Korea's SK Energy cuts No 1 cracker op rate to 70% in Nov

16 November 2011 10:35  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s SK Energy has trimmed the operating rate at its 190,000 tonne/year No 1 naphtha cracker in Ulsan as scheduled to 70% of capacity this month because of weak market conditions, a company source said on Wednesday.

He said production at the cracker was expected to be maintained at the above level in December.

The cracker was running at 80% of capacity in October.

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

Cracker operators in Asia are facing squeezed margins because of prevailing low olefins prices, while feedstock naphtha prices remain high, market sources said.

Ethylene spot prices were assessed stable at $990-1,040/tonne (€733-770/tonne) CFR (cost & freight) NE (northeast) Asia on Wednesday, according to ICIS.

($1 = €0.74)

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By: Peh Soo Hwee
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