Nippon eyes PX production cuts due to high costs
23 April 2008 08:12 [Source: ICIS news]
SINGAPORE (ICIS news)--Japan's Nippon Oil is considering reducing paraxylene production at its facilities due to the recent surge in upstream crude and naphtha prices, a company source said on Wednesday.
“We are seriously considering cutting operating rates,” the source said, adding that although no final decision has been made it was looking to cut output by around 20%.
Crude oil prices had hit a new record of $119.90/bbl this week while naphtha prices also climbed to new highs of $968/tonne CFR (cost and freight)
Nippon is currently running its two 225,000 tonne/year PX lines in Mizushima and a 350,000 tonne/year unit in
The producer also operates a 400,000 tonne/year facility at
Separately, the source also confirmed that the company had settled its May PX Asian contract price (ACP) at $1,290/tonne (€812.7/tonne) CFR Asia with some of customers.
The settlement represents a $30/tonne increase from April but was $60/tonne lower than the company’s nomination at $1,350/tonne CFR Asia.
($1 = €0.63)
For more on PX and PTA visit ICIS chemical intelligence
By: Peh Soo Hwee
+65 6780 4359
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