S Korea’s Honam may cut PP output in May on poor margins

17 April 2012 12:14  [Source: ICIS news]

SINGAPORE (ICIS)--Honam Petrochemical may cut production at its polypropylene (PP) facilities at Yeosu and Ulsan in South Korea in May, if margins from sales of the polymer do not improve, a company source said on Tuesday.

The producer operates three PP plants in Yeosu with a combined capacity of 400,000 tonnes/year, and two PP plants at Daesan with a combined capacity of 550,000 tonnes/year, according to ICIS data.

Operating rates at the plants may be cut to 70-80%, the source said.

Honam’s sales margins in PP are being squeezed by high prices of feedstock propylene in Asia, the source said.

The producer has a new 200,000 tonne/year PP plant at Yeosu that it hopes to start up on 23 April.


By: Chow Bee Lin
+65 6780 4359



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