Formosa chlor-alkali plant to undergo turnaround

02 May 2007 08:39  [Source: ICIS news]

SINGAPORE (ICIS news)--Taiwan’s largest chlor-alkali producer Formosa Plastics plans to shut down its caustic soda plant for a scheduled turnaround in mid-June, said a company source on Wednesday.

 

The company would shut its 385,000 tonne/year plant in Kaohsiung for 10 days to two weeks, while its 790,000 tonne/year facility in Mailiao, Yunlin, would continue running as usual, the source added

 

Formosa’s downstream ethylene dichloride (EDC) and vinyl chloride monomer (VCM) lines in Kaohsiung would continue running, albeit at lower rates, the source added.

 

The shutdown is expected to apply upward pressure on contract negotiations in the second half of 2007 as tighter supply would help push caustic soda prices above the current $265/dry tonne FOB (free on board) NE Asia (northeast Asia), sources said.

 

By comparison, spot prices in the region firmed to $255-270/dry tonne FOB from $240-260/dry tonne FOB in March, while prices in southeast Asia climbed back to $300-315/dry tonne CFR (cost and freight) SE Asia (southeast Asia) from $290-300/dry tonne in March, on tight supply and renewed demand.

 

By: Yao Wang
+65 6780 4359

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