Asahi to cut operating rates by half at SM unit

29 May 2007 09:38  [Source: ICIS news]

SINGAPORE (ICIS news)--Major Japanese styrene monomer (SM) producer Asahi Kasei Chemicals will cut the operating rate at its 320,000 tonne/year SM unit by half from 1 June for about two weeks to carry out repairs, a company source said on Tuesday.

 

In light of the cutbacks in output, Asahi will have no spot cargo available for June shipment. It will also delay the loading of its June contract cargoes by four to five days.

 

The No 2 unit at Mizushima has been running at about 90% capacity since last Friday, when a fault was detected. A team of engineers is now carrying out an investigation to identify the cause of the problem.

 

 “We will operate at a reduced rate of 50% for about two weeks for the repairs to be carried out,” a company source said.

Asahi is Japan’s largest SM producer and has two other SM plants at the same site. Its No 3 unit has a capacity of 390,000 tonnes/year and its No 1 unit has an output of 150,000 tonnes/year. The latter will be shut permanently from October.

SM spot business was concluded on Monday at $1,400/tonne FOB (free on board) Korea for July, up about $20/tonne from last week. Buying ideas were at 1,405/tonne on Tuesday at 09:30 London time. 

 

By: Helen Yan
+65 6780 4359

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