12 November 2013 17:45 [Source: ICIS news]
Correction: In the ICIS story headlined “Dow Chemical to close Tarragona cracker for a 'few weeks' dated 12 November 2013, please read in the third paragraph … has the capacity to produce 650,000 tonnes/year of ethylene according to the company … instead of … 370,000 tonnes/year of ethylene … A corrected story follows.
LONDON (ICIS)--Dow Chemical will temporarily close its cracker at Tarragona in Spain from 1 December because of challenging market conditions and an unclear demand picture for polyethylene (PE), a company source said on Tuesday.
The source said that, because the demand picture for PE across the Europe, Middle East and Africa region was unclear, Dow would be adjusting operating rates at its Tarragona PE site in an effort to match expected demand levels.
Because of the reduced ethylene consumption, the cracker, which has the capacity to produce 650,000 tonnes/year of ethylene according to the company, would have to be taken off line.
The European ethylene market is already under bearish pressure because of imports from the US and Mexico and supply length is generally expected to grow once cracker maintenance is complete.
The source stressed that the closure was a temporary move and that the Tarragona site will operating at a reduced rate for a few weeks.
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