29 March 2010 10:11 [Source: ICIS news]
SINGAPORE (ICIS news)--China’s Tai Zhou Petrochemical plans to shut its two methyl ethyl ketone (MEK) lines at Jiangsu for a month-long maintenance period in late March or early April, an industry source close to the company said on Monday.
The two lines have a total nameplate capacity of 40,000 tonnes/year, the source added.
"This is a good news for us, as the oversupply could be eased," a local trader based in eastern China said in Mandarin.
A key producer in China said: "Domestic prices have been softening after the Lunar New Year due to excess supply in the country. We are trying really hard to export more volume to balance the supply-demand, so this turnaround may aid to support the prices."
Inventories were heard at a record-high of 10,000 tonnes in eastern China and 7,000-8,000 tonnes in southern China, exceeding 20-30% compared with the local demand, market players said.
MEK domestic prices were negotiated at yuan (CNY) 8,200-8,300/tonne ($1,201-1,215/tonne) ex-tank in eastern China and CNY8,300-8,400 ex-tank in southern China on 26 March, according to global chemical market intelligence service ICIS pricing.
($1 = CNY6.83)
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