Taiwan’s Formosa shuns spot naphtha buying

08 August 2012 08:34  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan's Formosa Petrochemical Corp (FPCC) has no plans to seek any spot naphtha material, a move seen weighing on the market, traders said on Wednesday.

The absence of Formosa, which typically buys up to 300,000 tonnes of spot naphtha every month, has led to a weakening crack spread, they said.

The second-half September naphtha crack spread slipped to $86.65/tonne (€70.19/tonne) on Tuesday from $88.55/tonne on Monday, according to ICIS data.

“Demand is slow,” said a trader.

Formosa has delayed resuming operations at its 700,000 tonne/year No 1 cracker in Mailiao, citing minor mechanical issues at the unit.

The cracker was supposed to be restarted on 5 August following a planned turnaround that began in June.

Meanwhile, FPCC’s 1.03m tonne/year No 2 cracker at the site will be shut on 15 August for 30 days of safety inspections and minor maintenance.

($1 = €0.81)

By: Felicia Loo

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