Shandong Binhua to launch new PO line in end-June

23 May 2008 08:04  [Source: ICIS news]

SINGAPORE (ICIS news)--Shandong Binhua, a Chinese chemicals producer, is starting up its fourth propylene oxide (PO) line of 60,000 tonnes/year around late June, a company source said on Friday.

“Construction is almost complete after it began about a year ago. We’ll be starting the unit up around end-June/early July even though it is a seasonal lull for PO sales,” he added.

The new addition will bring Shandong Binhua’s total PO capacity to 170,000 tonnes/year. The three existing lines have capacities of 25,000 tonnes/year, 35,000 tonnes/year and 50,000 tonnes/year.

The company is already the biggest PO seller in the country and the fresh capacity would enhance its position in the market, the source said. Shandong Binhua does not have any captive capacity for PO.

Nonetheless, high feedstock costs and pollution control measures are likely to keep the operating rates of PO plants low during the second and third quarters.

Prices were at yuan (CNY) 14,200-14,550/tonne ($2,046-2,097/tonne) DEL (delivered) on Friday, up CNY100-150/tonne from a week earlier on the back of feedstock propylene expenses, according to global chemical market intelligence service ICIS pricing.

For more on PO, visit ICIS chemical intelligence.

($1=CNY6.94)

By: Hsin Hun Wan
+65 6780 4359

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