China’s Xinjiang Zhongtai Q1 profit falls on PVC price slide

28 April 2009 11:47  [Source: ICIS news]

SHANGHAI (ICIS news)--China’s leading chlor-alkali producer Xinjiang Zhongtai Chemical Co said its net profit plunged 90.58% year-on-year to yuan (CNY)5.08m ($743,777) from the same period in 2008 due to sharp falls in polyvinyl chloride prices, according to the company's filing to Shenzhen Stock Exchange on Tuesday.

Average PVC prices fell by CNY1,400/tonne to around CNY6,000/tonne in the first quarter from a year ago.

Earnings were further squeezed by rising costs of feedstock carbide in the first three months, the company said.

Xinjiang Zhongtai's operating income also fell 10.89% to CNY664.9m in durinng the period.

The company produced 115,400 tonnes of PVC resins and 86,300 tonnes of caustic soda in the March quarter.

It said it expects profits in the first six months of this year to fall 70-90% from levels in the same period last year due to declining PVC prices.

Xinjiang Zhongtai is based in China's northwestern province of Xinjiang. It has a nameplate PVC capacity of 460,000 tonnes/year and caustic soda capacity of 350,000 tonnes/year.

($1 = CNY6.83)

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By: Judith Wang
+65 6780 4359

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