26 August 2008 03:50 [Source: ICIS news]
SINGAPORE (ICIS news)--Formosa Plastics Co (FPC) plans to cut output of the 18% VA content grade ethylene vinyl acetate (EVA) and raise that of high 28% VA content material at its Mailiao, Taiwan, plant in September and October, a company official said on Tuesday.
The changes at its 150,000 tonne/year plant were in line with a turnaround at its upstream ethylene supplier’s facility as well as weak demand from the downstream footwear sector, he added.
“We will cut output of the 18% VA content grade by 20% to 30% in September and October due to the 45-day maintenance shutdown of the ethylene unit next month,” he said in Mandarin.
He added that weak demand for the 18% VA content grade EVA from the downstream footwear sectors in ?xml:namespace>
The recent volatility in crude values had also discouraged buyers to replenish inventories as buyers were not convinced that EVA prices had hit bottom, he said.
“Meanwhile, we will raise the output ratio in favour of the 28% VA content grade for the second time this year in September as demand for the 18% VA content grade is weak,” he said.
The overall output for both grades in September and October was pegged at around 16,700 tonnes, against the normal 20,000 tonnes, he added.
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