Shandong Jinling delays restart of PO unit to H2

25 March 2008 02:52  [Source: ICIS news]

SINGAPORE (ICIS news)--Shandong Jinling, a Chinese propylene oxide (PO) producer, is not expected to restart its plant before the third quarter, a company source said on Tuesday.

“Besides ongoing work to redirect the plant’s pollutants to safer areas, the current high prices of feedstock propylene is keeping us from restarting it any time soon,” he added.

The 80,000 tonne/year plant was taken offline last September on pollution woes and was expected to resume output in the first quarter.

“Margins are still poor. Even though PO prices have gone up in the past two weeks, they are merely catching up with higher costs and do not reflect stronger sales,” the source said.

Prices rose for the second consecutive week on propylene costs to yuan (CNY) 13,600-13,900/tonne ($1,926-1,969/tonne) DEL (delivered) on Friday, according to global chemical market intelligence service ICIS pricing.

“We won’t be restarting in another two or three months, at least not till the second half of this year,” he added.

($1 = CNY7.06)

 For more on PO, visit ICIS Chemical Intelligence.

By: Hsin Hun Wan
+65 6780 4359

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