Market sources in South Korea informed SSESSMENTS.COM that Lotte Chemical is planning to restart production at its cracker in Daesan after being shut in early March due to an explosion that damaged its compressor. The compressor is currently under repair. However, the COVID-19 pandemic presents difficulties in getting the technicians on time. Hence, the shutdown is prolonged.
According to the sources, Lotte Chemical will restart the cracker in between the end of October and the middle of November. They noted that associated downstream plants are currently operating at slightly reduced rates. To cover the feedstock shortfall, Lotte Chemical has been sourced ethylene from other South Korean producers since March.
As SSESSMENTS.COM noted, Lotte Chemical operates downstream plants in Daesan that can produce up to 700,000 tons/year of ethylene glycol, 860,000 tons/year of ethylene oxide, 140,000 tons/year of LDPE, 320,000 tons/year of swing LLDPE/HDPE, and 580,000 tons/year of SM.
