02 October 2008 10:49 [Source: ICIS news]
SINGAPORE (ICIS news)--LG Chem plans to cut production at its two isopropanol (IPA) lines at Yeocheon to 50% from mid-October due to weak market conditions and to carry out maintenance, a source from South Korea’s largest IPA firm said on Thursday.
"We want to protect the China market," said the source, adding that the cuts would last until the end of October. Both lines are currently running at 100%.
Prices in China, Asia’s leading IPA market, had tumbled recently due to poor demand from the downstream paints and coatings sector while supply from regional producers especially in South Korea was perceived to be ample.
Spot prices in northeast Asia were at a five-month low of $1,350-1,450/tonne CFR (cost and freight) NE Asia last week, according to global chemical market intelligence service ICIS pricing.
LG Chem had brought on stream a new 55,000 tonne/year acetone-based line in Yeocheon in late June this year. It also runs another 45,000 tonne/year line at the same site, which uses propylene as a feedstock.
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections