Sinopec PS plants divert SM to quake relief effort

03 June 2008 11:25  [Source: ICIS news]

SINGAPORE (ICIS news)--Two Chinese polystyrene (PS) plants run by Sinopec subsidiaries have stopped production in order to divert feedstock styrene monomer (SM) to expandable polystyrene (EPS) manufacturers for the earthquake relief effort, market sources said on Tuesday.

 

“The cutback of PS production could lift prices in the weeks ahead as supply tightens,” traders said.

 

Guangzhou Petrochemical’s 50,000 tonne/year PS unit and Zhanjiang Xinzhongmei’s 100,000 tonne/year unit both in the country’s south were shut down this week and their SM diverted to EPS manufacturers.  

 

Market talk of Shanghai Secco potentially cutting back PS production at its 300,000 tonne/year plant in eastern China also circulated the market but could not be confirmed.

 

The move would be in line with government efforts to provide more than 1m temporary homes to victims of the 12 May quake by the end of September in the devastated southwest Sichuan province. It is estimated that about 100,000 tonnes of EPS was needed to build these houses.

 

The death toll from the disaster currently stands at more than 69,000 people.

 

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By: Clive Ong
+65 6780 4359

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