S Korea’s YNCC to cut Yeosu cracker rates to 90% on poor margins

22 May 2012 10:32  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s Yeochun NCC (YNCC) plans to cut the operating rates across its three naphtha crackers in Yeosu to 90% in end-May on squeezed margins caused by a recent slump in olefins and polyolefins prices, a company source said on Tuesday.

The three crackers are currently running at full rates, the source said.

YNCC operates a 857,000 tonne/year No1 cracker, a 578,000 tonne/year No 2 cracker and a 465,000 tonne/year No 3 cracker at the site.

Ethylene and propylene spot prices were hovering at four-month lows during the week ended 18 May, as concerns over the poor performance of key derivatives such as polyethylene (PE) and polypropylene (PP) weighed on market sentiment.

Ethylene was assessed at $1,110-1,200/tonne (€866-936/tonne) CFR (cost and freight) northeast (NE) Asia, while propylene was at $1,250-1,330/tonne CFR NE Asia last week, according to ICIS.

Falling olefins prices partly drove ethylene margins to slip by $8/tonne week on week to $119/tonne in northeast Asia on 18 May, ICIS data showed.

($1 = €0.78)

By: Peh Soo Hwee
+65 6780 4359

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