SINGAPORE Oct 9 Taiwan's Formosa Petrochemical
Corp has delayed receiving two naphtha shipments to November
from October after it cut operating rates at its 2.93 million
tonnes per year (tpy) naphtha cracking complex, traders said on
Formosa, Asia's top naphtha buyer, cut its crackers' run
rates to about 80 percent of capacity in late September
following a fire at a monoethylene glycol (MEG) plant operated
by its sister company Nan Ya Plastics.
Naphtha is cracked into ethylene, among other hydrocarbon
products. Formosa supplies some ethylene to Nan Ya Plastics to
be made into MEG, which is used in the production of polyester
(PET) resins, among other things.
Traders estimated the shipments to be deferred likely
totalled about 60,000 tonnes of naphtha, or about 40 percent of
approximately 150,000 tonnes Formosa had bought last month for
October delivery to Mailiao.
The cracking complex will operate at the reduced rate
throughout October, which would result in a loss of nearly
160,000 tonnes of naphtha demand this month.
It had already cancelled a tender to buy November naphtha
after the fire at the MEG plant.
Traders said the decision to defer the 60,000 tonnes was
likely made 1-1/2 weeks ago.
(Reporting by Seng Li Peng; Editing by Alison Birrane)