Formosa Petrochemical Corp. is considering cutting its ethylene output temporarily if global petrochemical prices continue to slide and fall below cost, as per Dow Jones Newswires. The reduction is likely take effect if spot ethylene price falls below US$1160/ton. The company plans to buy ethylene from the spot market to meet customers' orders.
According to a Tokyo-based trader, ethylene spot prices have been hovering between US$1,150 and US$1,200 a ton recently. The trader said a producer usually needs a margin of US$200/ton to break even.