By Yu-huay Sun
Oct. 29 (Bloomberg) -- Formosa Petrochemical Corp., Taiwan's only publicly traded oil refiner, is delaying the restart of its No. 3 ethylene plant because of weak market demand for the plastics ingredient.
The fuels and chemicals producer is running its other two ethylene units at 80 percent of capacity, Lin Keh-yen, a spokesman at Formosa, said by phone from Taipei today. The refiner had planned to resume output at the No. 3 plant yesterday after regular maintenance.
The global financial crisis and concern slowing economic growth may reduce demand has slashed returns from producing ethylene, the raw material for plastics and synthetic fibers. Northeast Asian prices for the chemical fell 38 percent during the third quarter, according to oil-pricing service Platts.
``We're waiting for the market to rebound, for demand to rise,'' Lin said, without giving a new date for the restart of the No. 3 ethylene plant.
Formosa Petrochemical, based in Mailiao in western Taiwan, has three ethylene plants with a combined annual capacity of 2.94 million metric tons, including the No. 3 unit's 1.2 million tons. It has a daily capacity to process 540,000 barrels of crude oil.
The No. 3 ethylene plant was shut Sept. 3 for scheduled maintenance. The company had previously delayed its restart from Oct. 18, after three typhoons hit Taiwan in September, causing torrential rains and delaying works on the unit.
To contact the reporter on the story: Yu-huay Sun in Taipei ysun7@bloomberg.net
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