Improved ethylene margins could prompt Indonesian producer to raise cracker rate

14-Jul-08

Indonesia's Chandra Asri could consider raising operating rates at it's 600,000 tpa ethylene et cracker at Anyer that has been running at 80-85%. Poor margins triggered by rising crude and feedstock values, had led to reduced rates since early April. Ethylene margins, in mid March, were negative by US$200-250/mt. Recent weeks have seen an improvement in ethylene margins due to an increase in ethylene prices and reduced naphtha costs. Margins were only negative by US$5-10/mt by second week July. If petrochemical margins are sustainably better, the Indonesian major might raise operating rates, next month, at its naphtha-fed steam cracker.