Formosa may shut down No-2 olefin plant as per plan
02 Aug '10
1 min read
According to reports, emanating from Taiwan "Economic Daily", Formosa Petrochemical Corp is planning to undertake maintenance shutdown of the No-2 olefin plant as per schedule.
This decision has been taken on the recommendation of the Labor Safety Inspection Unit and also despite the fact that the No-1 olefin plant is already shut down due to a fire which took place in the plant a few days ago.
The news has stimulated the spot price of Asian propylene to grow by US $30 per ton or about 3 percent, and has also helped drive the downstream derivatives market higher.
Ethylene, after being in a decline for the last 12 weeks, has now slowly stabilized and seems to be in the stages of a rebound.
The production capacity of the Formosa No-1 olefin plant is 700,000 tons of ethylene per annum and that of No-2 is 1.03 million tons of ethylene per year. The company had earlier decided to postpone the shutdown of the No-2 plant.
As the two ethylene production plants account for 60 percent of total ethylene production capacity of Formosa Petrochemical, suspension of production is bound to bring about ethylene shortage in the market.
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