Mitsui cuts benzene demand on reduced op rates

06 August 2008 09:34  [Source: ICIS news]

SINGAPORE (ICIS news)--Asia’s largest phenol producer Mitsui Chemicals has cut its monthly demand for feedstock benzene by 10,000 tonnes due to reduced operating rates at its three lines in Japan, said a company source on Wednesday.

 

The company had decided to reduce operating levels as high feedstock benzene values and a weak trend in the key Chinese market had eroded production margins, he added.

 

The Chiba and Osaka-based lines producing in total about 550,000 tonnes/year of phenol were running from June this year at an average of 80% capacity.

 

There is no schedule at present with regard to ramping up production, said the source.

 

“[If] the market price improves, we will raise production,” he added.

 

The company purchases about 50,000 tonnes of benzene every month for phenol production at the three units.

 

Mitsui also produces about 300,000 tonnes/year of phenol at its Singapore-based plant, with its monthly benzene requirement estimated at 25,000 tonnes.

By: Mahua Chakravarty
+65 6780 4359

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