Ningbo Mitsubishi to shut China PTA in Nov

02 November 2007 15:09  [Source: ICIS news]

HANGZHOU (ICIS news)--Ningbo Mitsubishi Chemical (NMC) plans to shut its 600,000 tonne/year purified terephthalic acid (PTA) plant in China for two weeks, a company source said on Friday.

 

The shut down will occur later this month. The exact dates would be made known only later next week.

 

"Feedstock costs had been too high for us to bear, it's better off we cut back on production rather than make such losses," said the source.

 

Feedstock paraxylene costs had risen to $1,130-1,135/tonne CFR (cost & freight) Taiwan/China from early October's $1,050-1,060/tonne.

 

However, PTA prices had fallen from yuan (CNY) 7,800-7,900/tonne ex-warehouse to CNY7,050-7,150/tonne over the same period.

 

At prevailing prices, PTA producers, including NMC, are expected to make massive losses in November.

 

NMC is a joint venture between Japan's Mitsubishi Chemical, Mitsubishi Corp and Itochu Corp, as well as Chinese conglomerate Citic group.

 

($1  = CNY7.46)

By: Salmon Aidan Lee
+65 6780 4359

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