31 May 2012 09:39 [Source: ICIS news]
(adds details throughout, impact on naphtha market)
By Ong Sheau Ling and Nurluqman Suratman
The No 3 unit has a nameplate ethylene capacity of 1.2m tonnes/year and the largest of the three crackers at the site.
“The plant was shut because of poor downstream demand and because of the some maintenance shutdowns of downstream plants,” Lin said without elaborating.
Lin said that FPCC has yet to fix a restart date for the unit, but traders said they expect the No 3 unit to be shut for about two weeks.
A company source who declined to be identified said that the shutdown will be around 14 days since technical repairs will also be conducted at the plant.
“We are planning to bring the other two crackers’ capacity to around 90%,” FPCC spokesperson Lin said.
Prior to the shutdown of the No 3 cracker, FPCC was running its three Mailiao crackers at a reduced rate of 80% since mid-May because of poor margins.
The unplanned shutdown of the cracker may exacerbate the existing long supply of naphtha in
At midday, open-spec naphtha prices were at $820.50-838.50/tonne (€664.61-679.19/tonne) CFR (cost and freight)
FPCC will skip spot naphtha purchases for loadings in the second half of July, a source close to the company said.
The No 3 cracker’s shutdown, however, is expected to have minimal impact on Nan Ya Plastics’ monoethylene glycol (MEG) facilities at the site that derive ethylene feedstock from the cracker, a Nan Ya source said.
($1 = €0.81)
Additional reporting by Peh Soo Hwee, Chow Bee Lin and Becky Zhang
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