S Korea’s YNCC mulls cracker rate cuts on weak derivative margins

19 November 2012 04:11  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s Yeochun NCC (YNCC) is considering to reduce operating rates at all of its three naphtha crackers at Yeosu in December because of poor derivative polyethylene (PE) margins, a company official said on Monday.

“We are calculating the economics and discussing to reduce all three cracker operating rates in December by a minimum of 10% because PE margins are negative in December,” the official said.

The company will have to cut their term ethylene volumes for customers, the official added.    

The company's three crackers at the site have ethylene capacities of 857,000 tonnes/year; 578,000 tonnes/year, and; 465,000 tonnes/year.

All three crackers are currently operating at 100% capacity, he added.

By: Helen Lee

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