03 December 2008 08:17 [Source: ICIS news]
SINGAPORE (ICIS news)--China-based Jiangsu Sopo halved its ethyl acetate output at its 200,000 tonne/year plant at Zhenjiang in Jiangsu province early this week owing to poor domestic and exports demand, a company official said on Wednesday.
"The ethyl acetate market is weaker than the upstream acetic acid sector and our monthly export volume has lessened considerably so we have no choice but to cut output by half since early this week," he said in Mandarin.
The producer exports up to 8,000 tonnes of ethyl acetate a month in good times, he added.
"Our November export volume had dipped to 5,000 tonnes and it would be good enough just to be able to maintain this level for December," he said.
Ex-tank trades in eastern China fell to yuan (CNY) 5,100-5,200/tonne ($741-756/tonne) by Wednesday, down CNY100/tonne from last Friday's closing price, extending the previous week’s losses.
Demand from downstream printing inks and solvents industries in China remained sedate amid global economic downturn and the US recession. High inventories coupled with poor demand from downstream industries in Asia also curbed buying impetus for Chinese ethyl acetate exports.
Operating rate cuts undertaken by another eastern China-based ethyl acetate producer in early November helped prices to bounce back but this proved to be short-lived.
($1 = CNY6.88)
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