29 April 2010 08:32 [Source: ICIS news]
Correction: In the ICIS news story headlined "?xml:namespace>
SINGAPORE (ICIS news)--South Korea’s KP Chemical has proposed a $100/tonne (€76/tonne) hike in purified isophthalic aicd (PIA) values from 1 May as high raw material prices had squeezed its margins, a company source said on Thursday.
The company proposed to offer May PIA stocks at $1,350-1,450/tonne CFR (cost and freight) northeast
“Hopefully we could pass on our cost pressure, taking advantage of current peak demand season for downstream polyethylene terephthalate (PET) bottle chips,” the source added.
The company meanwhile, planned to lower operating rates at its 200,000 tonne/year PIA unit in Ulsan to 55-60% from 1 May on weak margins, the source said, adding that the unit was currently running at around 65-70%.
PIA is used as a modifier in downstream PET bottle-grade resins and as an additive in coatings.
KP Chemical also runs two purified terephthalic acid (PTA) plants with a total capacity of 800,000tonnes/year at the same site.
($1 = €0.76)
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