Indonesia's Lotte Chemical Titan to cut operation rate

According to market sources, PT Lotte Chemical Titan Nusantara is planning to cut operation rate at its PE plant this September by 30% due to high feedstock costs. A source close to the company informed allocation to local market would only have 28,000 metric tons instead of 40,000 metric ton per month.

It is unclear on how long the plant would remain operating at lower rate.

PT Lotte Chemical Titan Nusantara is non-integrated petrochemical plant in Indonesia. It is designed to produce 200,000 tons/year of LLDPE and 250,000 tons/year of HDPE.  

Player commented that this would help to tighten local PE supply and possibly push prices up after an extended period of slow trade.