Petrotahlil - Private-sector Taiwanese cracker operator Formosa is planning to restart production at its No.2 ethylene cracker in Mailiao on 6-7 June following a shutdown earlier this week.
The 720,000 t/yr cracker was taken off line on 1 June because of mechanical issues. The problem did not appear to lead to any shutdown or reduction in operations at Formosa's downstream plants at the same location.
The producer is maintaining full production at its No.1 and No.3 crackers in Mailiao. Formosa can produce about 3mn t/yr of ethylene from its three crackers at the site.
Formosa has scheduled maintenance for mid-August at its No.3 cracker, which produces 1.2mn t/yr of ethylene. The unit is expected to be shut for about 40 days.
The shutdown at Formosa's No.2 cracker has further reduced ethylene supply in northeast Asia. Ethylene prices in Asia have rallied in the past month because of increasingly tight supply of prompt cargoes in the region. Prices were at $700-725/t cfr northeast Asia on 3 June, the highest since 25 February this year.