18 June 2008 05:11 [Source: ICIS news]
SINGAPORE (ICIS news)--South Korea’s second-largest epichlorohydrin (ECH) producer Hanwha Chemical has reduced production at its facilities in Yeosu due to the nation-wide truckers’ strike, which began early last week, a company source said late on Tuesday.
"We are currently running at 50% due to the shortage of raw material, as transportation was affected due to the strike," said the source.
Hanwha operates two production lines with a combined capacity of 25,000 tonnes/year.
Supply from Samsung Fine Chemicals, South Korea’s largest ECH producer had also tightened.
"We are unable to make any firm offers as transportation has ceased due to the strike," said a source from Samsung.
The company runs a 48,000 tonne/year plant in Daesan, but current operating rates were unavailable, the source added.
Asian ECH prices surged $30-70/tonne to $1,980-2,050/tonne CFR (cost and freight) China for iso-tank material on escalating upstream propylene values and utilities costs, as well as hefty price hikes by producers, according to according to global chemical market intelligence service ICIS pricing.
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