South Korea’s LG Chem lower steam crackers run rates on thin margins

Market sources reported that LG Chem has lowered operating rates at all of its three naphtha crackers in Deasan and Yeosu in South Korea to 80% due to thin demand and highly volatile upstream naphtha costs.

All three crackers with a combined capacity of 3.25 million tons of ethylene and 1.48 million tons of propylene would operate at reduced rates throughout the month of January. It is reported that the producer would ramp up the production in February, however, it is unclear on the exact schedule.