Japan’s Showa Denko to cut Oita cracker ops below 90% in Nov, Dec

23 October 2012 03:35  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Showa Denko plans to reduce operating rate at its 695,000 tonne/year naphtha cracker at Oita to below 90% in November and December because of weak derivative polypropylene (PP) demand, a company official said on Tuesday.

The official said, “We will reduce the cracker operating rate in November and December to below 90% because PP demand is very low as supply is long.

“So maybe ethylene supply will decline because we had plans to export ethylene in the fourth quarter.”

The cracker is currently operating at 90% capacity, the official added.

“We have no spot ethylene cargoes for November because of the low price of ethylene and propylene,” he said, adding that the co-product butadiene prices are also low and cracker operators’ cost of production is high.

The PP plant in Oita with a capacity of 226,000 tonnes/year, is operated by Sun Allomer.

By: Helen Lee
+65 6780 4359

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