Indonesia’s Polychem to shut 96,000 mt/year monoethylene glycol line due to poor margins

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Singapore — Polychem Indonesia plans to shut its 96,000 mt/year monoethylene glycol line at Serang in Java next week, without a confirmed restart timeline, in response to poor margins, a company source said Tuesday.

Indonesia's Polychem to shut 96,000 mt/year monoethylene glycol line due to poor marginsThe company purchases ethylene to produce . The profit margin for Asian ethylene-based producers was calculated at minus $187/mt Monday, after averaging at minus $235/mt in February.

margin is calculated as the MEG CFR price minus the CFR ethylene price multiplied by 0.605 and deducting additional operating costs of around $150/mt.

The company has another 145,000 mt/year MEG line at Serang that is currently running well, the source added.

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–Miranda Zhang, miranda.zhang@spglobal.com

–Edited by Wendy Wells, wendy.wells@spglobal.com

Source: S&P Global Platts