03 April 2009 08:29 [Source: ICIS news]
SINGAPORE (ICIS news)--Chinese propylene oxide (PO) and industrial-grade monopropylene glycol (PG-I) maker Shandong Shida has slashed output by half at its unit in Shandong province due to poor market conditions, a company source said on Friday.
The plant in eastern China has an annual output of 40,000 tonnes of PO and 48,000 tonnes of PG-I.
The firm’s production suffered due to economic gloom and expensive feedstock, the source added.
"Propylene prices in China have been rising due to tight supply, while the downstream unsaturated polyester resins market is in very bad shape. Even our customers from the Middle East have reduced orders for material so we need to protect our margins," the source said in Mandarin.
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