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

Apparel/Garments | On 22nd Mar 2017

Amazon India introduces 'A-Z GST Guide' programme

Amazon India has introduced a programme called 'A-Z GST Guide' to...

Textiles | On 22nd Mar 2017

Dyeing textiles with bacteria

As an alternative to toxic synthetic dyes, scientists are exploring...

Courtesy: BCG

Apparel/Garments | On 22nd Mar 2017

Consumption in India to touch $4 trillion by 2025: Report

Consumption in India is likely to triple to $4 trillion by 2025 as...

Interviews View All

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Karan Arora
Karan Arora

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search