As the demand of South Korea's petrochemical companies rises for naphtha, its prices also increases. They are ready to buy from India.
As Yeochun NCC Co expands ethylene producing capacity and GS Caltex Corp increases its imports, naphtha's price will rise. Petrochemical companies from South Korea and Singapore are increasing their ethylene capacity to strike China's demand for chemicals.
South Korea's LG Chemical Ltd and Taiwan's Formosa Petrochemical Corp are among companies that will raise naphtha purchases next year. LG Chemical plans to improve its ethylene capacity by 54.2 percent to 7,40,000 tons in the second quarter. Formosa Petrochemical will begin a 1.2 million-ton-a-year cracker at its Mailiao refinery and petrochemical complex next year. Asian naphtha demand will continue to rise in the next five years as petrochemical firms expand, Kevin McConnachie, a consultant FACTS Global Energy, said.
Shipments of naphtha may rise further after Essar Oil Ltd starts an export-oriented refinery.
marketing@alchempro.com
