South Korea’s Lotte Chemical to cut steam cracker run rates

It is reported that Lotte Chemical is planning to lower operating rates at both of its naphtha crackers in Yeosu and Daesan starting 24 March 2022 amid the rising upstream costs that eat into the company’s profit margins.

The Yeosu cracker would be operating at 80% capacity while the Daesan plant would run at 90%. 

Lotte Chemical is the latest company joining the wave of operating rate cuts among naphtha cracking operators across Asia in recent weeks due to negative margins. In South Korea alone, Hanwha, LG Chem, YNCC, and KPIC have all either shut down or cut rates since January-February.