Formosa to delay restart of No. 1 cracker, shut No. 3 cracker: Asia's naphtha price and cracks fall

28-Jul-11

Naphtha prices and cracks in Asia have fallen to a four-session low on Wednesday as news Asia's that top naphtha buyer Formosa is likely to delay the restart of the No. 1 cracker and shut its No. 3 cracker for maintenance as scheduled; weighed on sentiments, as per Reuters. The Taiwanese refiner was to restart the 700,000 tpa No. 1 cracker in H1-August, after it was shut following a fire at a liquefied petroleum gas (LPG) pipeline on May 12. However, the restart plans suffered a setback on Wednesday morning after a fire damaged a power transmission network at Formosa Plastics complex. The fire is believed to have been caused at a hydrogen pipeline that belongs to a utility company. The line provides energy/power to many units in the Mailiao complex where Formosa's petrochemical units and refinery are located. The price for front-month open spec naphtha for H1-September fell to US$999/ton, its lowest since July 21.