Since a large number of ethylene manufacturing plants have either partially closed down or fully shut down in the last few months, due to the slowdown in demand for the raw material, the demand has started eclipsing supply in the last few days leading to the ethylene petrochemical units restarting their units.
Recently there were reports of the Taiwan based petrochemical major, Formosa Petrochemicals increasing utilization of its ethylene capacity. Fibre2fashion.com spoke to Mr Lin, spokesperson of the company, who said that they had indeed augmented their ethylene capacities compared to that of a few weeks back.
He added by saying that improved market conditions are the main reason for doing the same. According to reports the company is operating its ethylene capacities at roughly 90-95 percent compared to 80-85 percent a few weeks ago. Meanwhile ethylene prices have started climbing in the last few days and have risen by as much as 15 percent.