18 December 2012 06:57 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) plans to increase the operating rate at all its three naphtha crackers in Mailiao to above 90% in January, a company source said on Tuesday.
"Margins have improved," he said, adding that the specific operating rate has yet to be decided.
The crackers are running at 85% of capacity this month.
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.
Ethylene margins in northeast Asia based on naphtha feedstock jumped by $58/tonne (€44.08/tonne) to $100/tonne during the week ended 14 December, led by an increase in ethylene prices and a slight decline in raw material costs, according to ICIS data.
Ethylene spot prices rose $50/tonne to $1,250-1,300/tonne CFR NE Asia in the same period on the back of reduced supply in the region due to cracker operating rate cuts this month and an increase in the prices of key derivatives such as high density polyethylene.
($1 = €0.76)
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