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According to market sources, a major PE maker in Indonesia reportedly switched its 200,000 tons/year LLDPE line to produce metallocene to combat with squeezed margins from strengthened ethylene costs recently.

A distributor commented, “This might be the most reasonable solution for non-integrated producer at the moment. However, there were some technical issues that forced the company to take off the PE unit for several days. We are unsure for how long the producer would run metallocene, yet output might be exported to South Korea.”

As reported earlier, a Thailand producer has also planned to use its 400,000 tons/year LLDPE plant to make metallocene for the whole month of October 2016. For this, LLDPE supply from the maker might be tightened during Oct-Nov period, sources said.