Mitsui to cut MIBK output by 40% in Apr-May

01 April 2008 08:01  [Source: ICIS news]

SINGAPORE (ICIS news)--Mitsui Chemicals, Asia’s largest methyl isobutyl ketone (MIBK) producer, will reduce the output at its swing plant in western Japan to 60% from full rate in April and May to produce other solvents which are in short supply, a company official said on Tuesday.

The company planned to increase production of diisobutyl ketone (DIBK), methyl isobutyl carbinol (MIBC) and hexane glycol at its facility in Iwakuni, Yamaguchi prefecture, the official added.

"We are producing more of the three products because of the tight balance in Japan," the official said.

Mitsui typically manufactures around 400 tonnes of DIBK, 300 tonnes of MIBC and around 800 tonnes of hexane glycol annually, he added.

The MIBK production cutback would exacerbate an already tightly supplied market in Asia as sellers in South Korea and Taiwan also had limited spot availability, traders said.

Offers for April MIBK cargoes were heard up $50-80/tonne at $1,700/tonne CFR (cost and freight) Asia compared with March settlements while notional bids were pegged at $1,650/tonne CFR Asia, they said.

Asian MIBK spot prices were assessed notionally stable at $1,650-1,670/tonne CFR China/southeast (SE) Asia this week amid ongoing negotiations, according to global chemical markets intelligence service ICIS pricing.

By: Peh Soo Hwee
+65 6780 4359

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