S Korea’s Aekyung cuts DOP output on weak market

19 September 2008 08:16  [Source: ICIS news]

SINGAPORE (ICIS news)--South Korea’s Aekyung Petrochemical is running its dioctyl phthalate (DOP) line located in Ulsan at a reduced rate of around 60-70% on poor market conditions, a company source said on Friday.

 

“We are running the plant at lower rates [at least in the past week] due to poor economics and weak market sentiment. We will continue to review the market situation,” he added.

 

DOP prices have fallen by $220/tonne to $1,850-1,860/tonne CFR (cost and freight) E Asia (east Asia) since early August, squeezing margins for producers.

 

Feedstock phthalic anhydride (PA) and 2-ethylhexanol (2-EH) have fallen by $300/tonne and $240/tonne to $1,130-1,160/tonne CFR CMP (China Main Port) and $1,880-1,920/tonne CFR E Asia respectively but were still considered too high, according to global chemical market intelligence service ICIS pricing.

 

The source also confirmed that although the DOP line with a nameplate capacity of 350,000 tonnes/year had reduced operating rates, there was sufficient material for the spot market.

 

Other DOP producers in the region include Taiwan’s UPC Technology, South Korea’s DC Chem and Taiwan’s Nanya Plastics.

 

For more on dioctyl phthalate visit ICIS chemical intelligence

To discuss issues facing the chemical industry go to ICIS connect

 

 

By: Su Yeen Cheong
+65 6780 4359

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