Home / Knowledge / News / Textiles / Ethylene producers bid goodbye to steep profits
Ethylene producers bid goodbye to steep profits
26
Jun '10
Market participants had recently expressed their opinion that, naphtha cracker operators in Asia may drop operational rate in the second half of this year, if ethylene prices continue to lower in the coming days.

According to a ICIS price report, ethylene prices in Asia fell to $930 per ton (CFR, Northeast Asia) last week, testing a 7-month low, due to the impact of increased supply and higher inventory in the Middle East.

Japan has eight sets of ethylene crackers under downtime plan this year, which is expected to complete by the end of August.

In Southeast Asia, the only cracker operator Chandra Asri in Indonesia plans to reduce operating rate of its 600,000 tons per year plant located in Cilegon to 80 percent in July, while its capacity utilization in June is about 90 percent.

In the first half of this year, operating rates of Asian naphtha crackers generally remained at 90 percent and 100 percent, due to the over $400 per ton gross margins derived from ethylene production

But since the second half of May, the sharp decline in ethylene prices has affected the gross margin of ethylene manufacturers.

An olefin trader in Shanghai, China believes that market environment will become more difficult in the future, as concerns about the debt crisis in Europe and tightening credit of Chinese government will impact consumer demand, thus affecting petrochemical industry.

Fibre2fashion News Desk

Must ReadView All

Textiles | On 25th May 2017

Huntsman and Clariant to have merger of equals

Huntsman Corporation and Clariant have announced that their boards of ...

Courtesy: CBRE

Apparel/Garments | On 25th May 2017

European cities preferred for retailer expansion: CBRE

European cities were the preferred new destination for international...

Apparel/Garments | On 25th May 2017

Guess records $458.6 million revenue for Q1 2018

For the first quarter of fiscal 2018, the net revenue of American...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search