Taiwan’s FPCC plans to buy first-half December spot naphtha

24 October 2012 05:01  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) is planning to seek spot naphtha supply for delivery to Mailiao in the first half of December as it plans to raise its Mailiao crackers operating rates, traders said on Wednesday.

FPCC plans to raise its Mailiao crackers operating rates to 90% from 1 November, up by ten percentage points from October rates.

Two weeks ago, FPCC bought at least 30,000 tonnes of spot naphtha at a premium at below $10/tonne (€7.70/tonne) to Japan quotes CFR (cost & freight) for delivery to Mailiao in the second half of November, traders said.

Higher run rates at FPCC’s three crackers with a combined ethylene capacity of 2.93m tonnes/year will be implemented, in line with the restart of a downstream monoethylene glycol (MEG) plant at the site.

Taiwan’s Nan Ya Plastics, FPCC’s sister company, restarted its 720,000 tonne/year No 4 MEG plant at Mailiao on 22 October. The unit at the site was shut on 26 September following a fire that hit its heat exchange pipelines. FPCC subsequently reduced its cracker operating rates to 80% following the outage.

FPCC operates a 700,000 tonne/year No 1 cracker, a 1.03m tonne/year No 2 cracker, and a 1.2m tonne/year No 3 cracker in Mailiao. All the crackers will be operating at 80% capacity for the month of October, a FPCC official said earlier.

($1 = 0.77)

By: Felicia Loo

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