Asia BPA Q3 turnarounds offset by new capacities

01 February 2008 06:38  [Source: ICIS news]

By Jeremiah Chan

SINGAPORE (ICIS news)--Any reduction in supply due to a spate of turnarounds at Asian bisphenol-A (BPA) facilities in the third quarter may be offset by additional capacities coming on stream in the region, traders and producers said on Friday.

Nan Ya Plastics will shut its 100,000 tonne/year No 1 line in September for 30 days, Mitsui Chemicals will shut 65,000 tonne/year line in Osaka, Japan, from July to August, and Nippon Steel will shut their its 100,000 tonne/year facility located at Fukuoka, Japan, in June or July for 14 days.

“There will be almost no material available in late second quarter and early third quarter, phenol will be very short, and with the main producers undergoing turnarounds, BPA supply will be short,” a source from a major regional producer said.

Although the back-to-back shutdowns are expected to tighten supply in the third quarter, other producers pointed out that the additional 140,000 tonnes/year from Kumho P&B Chemicals and the Sinopec and Mitsui Chemicals’ new 120,000 tonne/year joint venture plant in Caojing, China, would help mitigate the shortage.

“The outlook for BPA this year is not too good, as there is plenty of new capacities coming on stream,” a China-based trader said in Mandarin.

The BPA market in the key China spot market has been rather subdued of late, with the bulk of domestic deals done around the yuan (CNY) 16,800/tonne ($2,340/tonne) ex-warehouse mark on Friday.

The dullness in demand came on the back of high Chinese domestic inventories following high import volumes in late-2007, and the closure of several downstream production facilities prior to the Lunar New Year festivities next week.

Most industry players will be also keeping their eyes on the downstream polycarbonate (PC) industry as well, which has suffered from lacklustre demand in recent months, thus weighing on BPA buying sentiment.

($1 = CNY7.18)

BPA shutdown schedule

Company	Capacity (tonnes/year)	Location	Shutdown schedule
Nan Ya Plastics	90,000	Mailiao	May 15 days
	100,000	Mailiao	No TA
	100,000	Mailiao	September 30 days
	130,000	Mailiao	No TA
Chang Chun Plastics	135,000	Kaohsiung	No TA
Taiwan Prosperity Chemical	80,000	Kaohsiung	March 21 days
LG Chem	120,000	Yeosu	Mid-Feb 3-4 days
Kumho P&B Chemicals	35,000	Yeocheon	Mid-April - Beginning May 20 days, shutdown No 1 line, DB No 2 line to reach 150,000 tonnes
	125,000
	150,000	Yeocheon	Ready in June 2008, commercial production in July 2008
Mitsui Chemicals	55,000	Nagoya	May to June
	65,000	Osaka	July till August
	90,000	Chiba	No TA in 2008
Mitsui Phenol (Singapore	76,000	Jurong Island	June to July
	76,000		November to December
	76,000		No TA in 2008
Mitsubishi Chemical	100,000	Kashima	June to July
	120,000	Kurozaki	October to November
Nippon Steel	100,000	Fukuoka	June/July

 

By: Jeremiah Chan
+65 6780 4359

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