Taiwan’s Chungshing runs polyester yarn unit at reduced rate

28 January 2010 09:45  [Source: ICIS news]

SINGAPORE (ICIS news)--Taiwan’s Chungshing Textile Co is running its 130,000 tonne/year polyester yarn plant at Taipei at a reduced rate of 70-80% due to uncertainty in feedstock values, a company source said on Thursday.

The plant, located in northern Taiwan, had been running at reduced rates since October last year due to spike in feedstock purified terephthalic acid (PTA) values and volatility in monoethylene glycol (MEG) prices during the period, the source said. MEG is another raw material for polyester yarn production.

"We have no near term plan to make adjustment to the operating rates, but we will monitor the feedstock prices closely as they are the main driver of the downstream polyester yarn and fibre prices," the source said in Mandarin.

PTA and MEG prices had been on an uptrend since December but prices started to soften at the beginning of this week.

PTA prices were at $935-948/tonne (€664-673/tonne) CFR (cost and freight) China while prices of MEG were at $990-1,000/tonne CFR China on Wednesday, according to global chemical market intelligence service ICIS pricing.

($1 = €0.71)

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By: Yu Guo
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