03 December 2012 04:59 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) is considering cutting operating rates at all its three naphtha crackers in Mailiao to 85% from 90% currently, a company source said on Monday.
“We are planning to cut operating rates at all three crackers … because of negative margins, but we don’t have a firm schedule yet,” the source said.
FPCC has 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 that operated at an average of 90% of capacity in November, up by ten percentage points from October run rates.
Ethylene margins based on feedstock naphtha in northeast Asia stood at minus $68/tonne (€52/tonne) in the week ended 30 November, according to ICIS data.
Margins were hit by a $25/tonne fall in ethylene spot prices, a 1.6% rise in naphtha costs and a 1.2% fall in co-product credits.
($1 = €0.77)
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