S Korea Honam's BTX unit back at full capacity

08 September 2006 09:34  [Source: ICIS news]

SINGAPORE (ICIS News)--Operations at Honam Petrochemicals’s benzene, toluene and xylenes (BTX) plant returned to full capacity this week, a source at the South Korean company said Friday.

The company reduced production by 5%-10% at its BTX plant in early August as pygas supply was tight in Asia because some petrochemical producers were using light naphtha.

Light naphtha produces less pygas as a by-product than heavy naphtha.

The BTX plant is also due for a scheduled shutdown towards the middle of September for a catalyst change, which is expected to last for a week.

However, the plant’s solvent grade xylene will only be ready to be shipped towards the end of October, the source added.

The demand this week has been fairly stable but the supply is tight, said a key Chinese trader. For the past few weeks, the solvent grade market was facing tight supply amid relatively quiet demand.

Benzene, toluene and mixed xylenes prices had been declining steadily in the past month, in line with crude values and the US market. But this week has seen some  fluctuations in Asian toluene and benzene prices.

Honam produces 180,000 tonnes/year of benzene, 90,000 tonnes/year of toluene and 54,000 tonnes/year of mixed xylenes.

By: Mahua Chakravarty
+65 6780 4359

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