Corrected: S Korea’s KP Chemical to up PIA by $100/t on squeezed margins

29 April 2010 10:11  [Source: ICIS news]

Correction: In the ICIS news story headlined "S Korea’s KP Chemical to up PIA by $100/t on squeezed margins" dated 29 April 2010, please read in the fourth paragraph …“ 200,000 tonne/year PIA unit...” instead of… “250,000 tonne/year PIA unit”…A corrected story follows.

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 Asia, the source said.

“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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By: Becky Zhang
+65 6780 4359



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