07 December 2012 04:35 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) has cut operating rates at all three of its naphtha crackers at Mailiao by five percentage points to 85% on 1 December, a company official said on Friday.
"We have cut operating rates at all three crackers by 5% to 85% earlier in the week because of negative margins,” he added.
FPCC was operating its 700,000 tonne/year No 1 cracker, the 1.03m tonne/year No 2 cracker and the 1.2m tonne/year No 3 cracker in Mailiao at 90% for the month of November, following a ten percentage point increase over October levels.
Ethylene margins based on feedstock naphtha in northeast Asia plunged by $98/tonne (€75/tonne) to minus $68/tonne during the week ended 30 November, becoming negative and reaching the lowest level in more than a year, 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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