Jiangsu Sopo may cut ethyl acetate output on tight feedstock

13 August 2009 07:57  [Source: ICIS news]

SINGAPORE (ICIS news)--China’s Jiangsu Sopo may cut the operating rate at its 200,000 tonne/year ethyl acetate plant in Zhenjiang, Jiangsu province if feedstock ethanol supply remains tight, a company official said on Thursday.

The company’s plan to trim production was preceded by Shanghai Wujing, which slashed output rates this month to 50% due to poor market conditions.

“We are making losses on ethyl acetate and if ethanol supply remains tight, we may cut operating rates,” he said in Mandarin, adding that the plant was currently operating at full capacity. 

Chinese domestic ethanol values rose for a third straight week to yuan (CNY) 4,700-4,800/tonne ($687-703/tonne) DEL, up CNY50-100/tonne due to limited supply of grain raw material.

Similarly, domestic ethyl acetate prices in eastern China rose for a third straight week in tandem with feedstock price hikes and following bulk volume cutbacks by producers to support the upswing. Transactions in eastern China were heard higher at around CNY5,200/tonne ex-tank, up CNY100/tonne from a week earlier.

Such price levels provided negative returns for sellers, local producers said.

($1 = CNY6.84)

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By: Helen Lee
+65 6780 4359

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