Strike hits South Korea PVC transportation

13 June 2008 11:45  [Source: ICIS news]

SINGAPORE (ICIS news)--The country-wide truckers’ strike in South Korea has affected transportation of polyvinyl chloride (PVC) and left producers bracing themselves for operating rate cuts if the strike continues, traders and sellers said on Friday.

LG Chemical, which has a 580,000 tonne/year PVC plant in Yeosu, might have to cut production if it cannot start moving its cargoes out of the plants in 10 days, a company source said.

Hanwha Chemicals’ 250,000 tonne/year PVC plant in Yeosu, which is undergoing a two-week turnaround that started early this week, might have to cut production if the strike lasts for more than a month, a company source said.

“Our plant will have low inventory levels when it restarts in two weeks' time, the source said.

"We can probably store one-to-two weeks' worth of cargoes but if the transport strike last beyond that, we might have some problems."

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By: Ng Hun Wei
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