12 February 2010 06:48 [Source: ICIS news]
SINGAPORE (ICIS news)--India’s Gujarat Narmada Valley Fertilizers Co (GNFC) may shut its 150,000 tonne/year acetic acid plant in Bharuch, Gujarat in the near term, citing problems at its upstream ammonia facility, a company official said on Friday.
The company’s ammonia production was disrupted early Wednesday due to an explosion and a fire at its fertilizer plant, GNFC said in a filing to the Bombay Stock Exchange.
GNFC would make a decision on the shutdown of the acetic acid plant next week, the company official said. The plant has a nameplate capacity of 100,000 tonnes/year but it can produce up to 150,000 tonnes/year of acetic acid.
“We are running at full load currently but we will make a decision on Monday or Tuesday whether we should stop the plant,” he said.
Another option was to just keep the plant running until a planned annual turnaround in March/April, the source said.
Indian domestic acetic acid prices rose this week to rupee (Rs) 26-27/kg ($561.19-582.76/tonne) ex-tank, up Rs5/kg week-on-week amid market speculation and buyers stocking up on expectations of supply shortages.
Offers of import cargoes for February/March delivery emerged at $440-450/tonne CFR (cost and freight) ?xml:namespace>
($1 = Rs46.33)
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