Korea Alcohol makes further butyl acetate cuts

19 September 2008 12:51  [Source: ICIS news]

SINGAPORE (ICIS news)--Korea Alcohol Industrials has cut butyl acetate output at its Ulsan-based plant to 50% of capacity, down 20% from last week, in a bid to stem the plunge in spot prices, a company official said on Friday.

 

The 50,000 tonne/year ethyl acetate/butyl acetate esterification plant was also expected to be taken offline next month for 12 days to facilitate a catalyst change and inspections, he added.

 

The company planned to gradually lower operating rates ahead of the shutdown, he said.

 

“All butyl acetate makers are controlling operating rates rather than dump cargoes,” he said.

 

“Buyers are expecting prices to drop further in line with falling raw material n-butanol prices but we are also waiting and hence not buying raw material at the lower prices yet so our cost of production is still at high levels,” he added.

 

Spot butyl acetate buying-selling indications were cited at $1,500-1,600/tonne CFR (cost and freight) SE Asia (southeast Asia) this week, down $50-100/tonne on last week, representing an eighth straight week of declines, according to global chemical intelligence service ICIS pricing.

 

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By: Helen Lee
+65 6780 4359

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