Formosa likely to start up Ningbo PP next week

24 March 2008 08:36  [Source: ICIS news]

SINGAPORE (ICIS news)--Formosa Polypropylene is likely to start up its new 450,000 tonne/year polypropylene (PP) unit in Ningbo in early April, a source close to the company said on Monday.

"We expect the plant to start trial production in early April if everything goes smoothly," the source said in Mandarin.

The start-up of the plant in China’s eastern province of Zhejiang, originally scheduled for the end of 2006, has been pushed back five times on construction delays due to the Chinese New Year holidays, difficulties in obtaining production licenses and problems in receiving propylene feedstock at the port terminal, industry sources said.

The company had already started shipping propylene from Mailiao in Taiwan to Ningbo, in preparation for the PP plant start-up, the company spokesman said.

"All vessel schedules had been confirmed, and we are only waiting for final approval to use the port," a third source said. "The approval should come soon".

PP prices in eastern China were expected to weaken when supply from the new plant hit the market, local traders said.

Locally produced PP injection and yarn grade was selling at yuan (CNY)12,200-12,550/tonne ($1,730-1,780/tonne) ex-warehouse last Friday, CNY100-250/tonne higher from the previous week, as local producers raised prices on depleted inventories.

($1=CNY7.05)

Florence Tan and Kew Jiahui contributed to this story.

By: Chow Bee Lin
+65 6780 4359

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