20 November 2009 06:50 [Source: ICIS news]
SINGAPORE (ICIS news)--Taiwan’s largest isopropanol (IPA) producer, Lee Chang Yung Chemical, has cut operating rate at its 100,000 tonne/year plant at Kaohsiung to 50% due to a shortage of feedstock propylene, a source close to the company said on Friday.
The producer had been gradually lowering output since last month due to tight propylene supply, the source added.
Propylene supplies were limited as an upstream 385,000 tonne/year No 3 naphtha cracker at Linyuan, operated by the country’s state-owned firm CPC, was undergoing a turnaround from late October to the middle of December, the source added.
Snug IPA supply and the recent spike in feedstock propylene values were expected to keep the IPA price uptrend intact this week, traders said.
Notional bids were raised to $1,050-1,070/tonne (€704-717/tonne) CFR (cost and freight) NE (northeast) Asia from the low $1,000s/tonne CFR NE Asia a week earlier but offers were scarce, they added.
($1 = €0.67)
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