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Chinese naphtha imports may face struggle
Nov '10
The Chinese petrochemical sector has been riding on a very fast track in recent months, due to the revival in exports from the textile sector. Imports of one of the key petrochemicals used in production of ethylene; naphtha too has shot up in 2010.

Due to an increase in petrochemical production capacity; naphtha crackers in China were running short of around 130,000 tons per month of the raw material on an average in the first nine months of 2010, which made it dependent on imports to feed its crackers.

But the competition to procure naphtha from the international markets may get fiercer in 2011, as South Korean petrochemical majors too have announced plans to expand naphtha cracker capacities.

Recently SK Energy, a large South Korean petrochemical manufacturer has decided to restart its closed 200,000 tons / annum naphtha cracker, which was shut down two years ago.

Fibre2fashion News Desk

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