NewsFlashBlue Star cuts BPA op rate to 60%

20 February 2006 00:44  [Source: ICIS news]

SINGAPORE (ICIS News)--Blue Star New Chemical Materials, China’s largest bisphenol-A (BPA) producer, is operating its 25,000 tonne/year plant at 60% of capacity due to feedstock phenol issues, a company official said late last week.

ICIS news reported in early February that the company had declared a force majeure on supplies from the plant at Wuxi, Jiangsu province, and told customers it was unable to fulfil contract obligations.

“We are speaking to our contract customers to see if we can delay the shipments,” the official said on Friday. He added that it was too early to say when full production would resume, and declined to give details on the problem.

Traders said there was minimal impact on the spot market as Blue Star’s monthly BPA output was only around 2,000 tonne, in contrast to average monthly import volumes of around 20,000 tonne.

BPA prices were assessed at $1,240-1,280/tonne CFR Northeast Asia last week, according to global pricing and market intelligence service ICIS-LOR, a sister company of ICIS News.

Blue Star also has a smaller 15,000 tonne/year plant at the same location. The facility has been shut since November due to poor market conditions and for maintenance, and a restart date has not been fixed.   

The company is an affiliate of state-owned China National Blue Star (Group).

By: Peh Soo Hwee
+65 6780 4359

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