S Korea's Hanwha Chemical operates Yeosu PE plants at 90%

11 December 2012 08:15  [Source: ICIS news]

SINGAPORE (ICIS)--Hanwha Chemical plans to operate its polyethylene (PE) plants at Yeosu, South Korea at 90% of capacity throughout December because of weak export demand, a company source said on Tuesday.

The producer operates two low density PE (LDPE) plants with a combined capacity of 327,000 tonnes/year, and three linear low density PE (LLDPE) plants with a total capacity of 379,000 tonnes/year, according to ICIS data.

Hanwha Chemical is still making reasonable margins from its PE production despite weaker export demand, the source said.

“Our margins are not as good as last year’s, but we can still manage at the current ethylene feedstock cost because domestic (PE) prices are strong,” he said.

Film grade LLDPE was selling at above $1,600/tonne (€1,232/tonne) on a delivered basis in South Korea, he said.

($1 = 0.77)

By: Chow Bee Lin
+65 6780 4359

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