Taiwan’s FPCC may shun spot naphtha buying, postpone term delivery

28 September 2012 03:21  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) is unlikely to seek more spot naphtha supplies and may consider the postponement of term naphtha deliveries, in view of reduced cracker rates, traders said on Friday.

“There is a kind of consideration [for postponement],” said one trader.

FPCC had reduced operating rates at its three Mailiao-based crackers to 80% capacity, following an outage at its sister company Nan Ya Plastics’ monoethylene glycol (MEG) plant at Mailiao in Yunlin County.

The 720,000 tonne/year No 4 MEG unit will be shut for around one month after a fire on 26 September. 

FPCC had bought by tender 30,000 tonnes of heavy naphtha for delivery to Mailiao in the first half of November, its first spot purchase since its last buying for June-delivered naphtha supplies, traders said.

However, FPCC cancelled a separate tender to buy open-spec naphtha because of reduced cracker run rates, traders said.

FPCC restarted its 1.03m tonne/year No 2 cracker on 14 September as scheduled following its routine maintenance. FPCC was running its No 2 cracker, 700,000 tonne/year No 1 cracker and 1.2m tonne/year No 3 cracker at full capacity before the cuts in operating rates.

By: Felicia Loo

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