28 September 2012 04:15 [Source: ICIS news]
SINGAPORE (ICIS)--State-owned Indian Oil has reduced the operating rates at its polyolefins facilities in Panipat to below 100% because of high inventories accumulated amid the weak domestic market, a company source said late on Thursday.
Prior to the adjustment of run rates in the week, the 350,000 tonne/year high density polyethylene/linear low density polyethylene (HDPE/LLDPE) swing plant, 300,000 tonne/year HDPE facility and 600,000 tonne/year polypropylene (PP) units were running at more than 100%, the source said.
At the same site, its upstream 857,000 tonne/year naphtha cracker is running at 100%, marginally reduced from its previous operating rates of more than 100%, the source added.
The appreciation in the Indian rupee, coupled with the presence of abundant lower-priced imports, weighed on buying sentiment, he said.
“We didn’t expect demand in the domestic market to be so weak. The run rates are just reduced slightly, while we continue to push for more export volumes,” he added.
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