Formosa Petrochem's H2 Aug naphtha buy is lower on reduced run rates

17-Jul-08

Corresponding to a 10 day shutdown at its gasoline-making residual fluid catalytic cracker from July 14, Taiwan's Formosa Petrochem has reduced operating rates at its 180,000 bpd crude unit. 55% of the RFCC's production is gasoline, and the balance is propylene. Ample stocks with the companies will not affect exports for July loading despite the shutdown. However, loss of gasoline output is inevitable. Formosa has bought 50,000 tons of open-spec naphtha for H2-August delivery to Mailiao at a discount of US$5/ton to Japan spot quotes. The market that was supported by demand from Taiwan, is on the whole still pressured by 400,000 to 500,000 tons of arbitrage naphtha expected to arrive in Asia.