S Korea’s Hanwha restarts EVA lower at 50%

05 November 2008 03:43  [Source: ICIS news]

SINGAPORE (ICIS news) – South Korea’s Hanwha Chemical resumed operations at its ethylene vinyl acetate (EVA) facility in Ulsan at 50% operating rates this week following a five-day shutdown since late October, a company official said on Wednesday.


Hanwha had shut the plant on 20 October to ease inventory pressure on the back of poorer-than-anticipated demand from the downstream footwear, hotmelt adhesives, cable and wire coatings sectors.  


The company operates two EVA lines totalling 70,000 tonnes/year of capacity in Ulsan.


“We restarted both lines on 26 October but we shut down one 35,000 tonne/year line on Tuesday to facilitate inspections and to cut down on inventories,” he said, adding that the shutdown would last for five days.


The company was planning to sell more cargoes to the Middle East and Africa given that demand in Asia remained weak.


Meanwhile, the outage of Celanese’s AT Plastics facility in Canada and subsequent force majeure declaration on its specialty polymers products offered an outlet for Asia’s EVA cargoes, he added.


“We are starting to contact customers in the US and Asia and we have sold a few hundred tonnes of 28% vinyl acetate (VA) content EVA to end-users and traders in the US,” he said.


Selling notions were pegged at $2,130-2,150/tonne FOB (free on board) Korea for 28% VA content EVA, the producer said.


The same grade was offered around $1,700/tonne CFR (cost and freight) southeast and northeast Asia this week, a hefty $400/tonne dive from last week due to a stark absence of buying interest in China owing to high inventories, according to global chemical market intelligence service ICIS pricing.


 For more on ethylene vinyl acetate visit ICIS chemical intelligence


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By: Helen Lee
+65 6780 4359

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