China’s Lanzhou shuts MEK unit in May - sources

21 May 2010 06:43  [Source: ICIS news]

SINGAPORE (ICIS news)--China-based Lanzhou Petrochemical has shut one of its methyl ethyl ketone (MEK) line in May, while keeping the other unit at reduced rates until the end of June, due to a shortage of feedstock, market sources said on Thursday.

“What I heard from the company is that the second unit is running at 20%, but to run at this level is equivalent to taking it offline,” a Chinese trader said in Mandarin.

Each MEK plant can produce up to 30,000 tonnes/year in Lanzhou, the capital of Gansu in northwestern China.

“Effectively, both units are shut since May and most likely only in July, there will be material for commercial sales,” a key supplier in China said.

Market players were concerned that the firm's shutdown would exacerbate the supply crunch in June, as Fushun Petrochemical had planned for a turnaround in June.

“Other units in the east are running at low operations too, the supply will get tighter and prices may firm,” a trader based in southern China said.

Company officials could not be immediately reached for comment. Lanzhou Petrochemical is a subsidiary of energy giant PetroChina.

For more on MEK, visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect 
Please visit the complete
ICIS plants and projects database

By: Ong Sheau Ling
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly