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.
“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.
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