South Korea truck strike tightens ECH supply

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.

To discuss issues facing the chemical industry go to ICIS connect
Please visit the complete ICIS plants and projects database

By: Liu Xin
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly