19 November 2009 07:20 [Source: ICIS news]
SINGAPORE (ICIS news)--China’s Qingdao Lidong plans to raise operating rates at its 700,000 tonne/year paraxylene (PX) facility in Qingdao next month due to improving margins, a company source said on Thursday.
It intends to run the plant at 90-100% in December from 70-80% currently, the source said. Plants production has been low since October when margins were getting squeezed by falling PX prices against relatively steady values of feedstock naphtha.
Regional PX producers typically need a naphtha/PX spread of at least $300/tonne to cover operational costs and break even.
From $250/tonne (€168/tonne) at the beginning of October, the spread has widened to $330/tonne on Wednesday, according to global chemical market intelligence service ICIS pricing.
Qingdao Lidong has no plans for any major turnaround at the plant next year, the source said. The PX plant had undergone 45 days of maintenance in April this year.
A typical PX plant only requires major maintenance once in every three years.Qingdao Lidong is a joint venture of Asia's largest refiner ?xml:namespace>
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