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Negative margin forces South Korea's SK to reduce PE production rateNegative margin forces South Korea's SK to reduce PE production rate |
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Market sources reported that SK Global Chemical is planning to cut the production rate of its LLDPE plants to 80% starting April 2018 due to negative margins.
Based in Ulsan, South Korea, the company has a 210,000 tons/year No. 1 LLDPE unit and a 190,000 tons/year No. 2 HDPE/LLDPE swing plant. A source closed to the company informed that both plants will be running at reduced rate for a month-long. Meanwhile, its two steam crackers with total ethylene production capacity of 860,000 tons/year will be running at 100% throughout the period.