24 October 2012 04:31 [Source: ICIS news]
By Chow Bee Lin
Integrated PP margins in northeast
Prices of the benchmark PP flat yarn fell by $20-30/tonne week on week to $1,390-1,430/tonne CFR (cost and freight)
Most of the PP plants in
“We will consider reducing our PP plant operating rates if the situation worsens,” said a source at SK Energy.
Honam Petrochemical will consider whether to reduce its PP output if the spread between propylene and PP spot prices narrows further, a company source said.
“We are still running our PP plants at full capacity now. We will consider whether to cut operating rates in November or not, depending on the market situation,” he said.
PP markets in
Weak downstream demand and uncertainty in the global economy had been weighing heavily on buyer sentiment and limiting purchases of the polymer in the spot market, resulting in thinning margins for PP makers, industry sources said.
“It is really tough for us now,” a source at Korea Petrochemical Industry Co (KPIC) said.
As of yet, KPIC has no definite plans to cut PP production, the source said.
South Korea is expected to produce 2% more PP this year at 3.8m tonnes, and export 2.3m tonnes of the resin, representing a 2.3% increase from last year, according to the Korea Petrochemical Industry Association (KPIA).
($1 = €0.77)
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