21 June 2010 10:09 [Source: ICIS news]
SINGAPORE (ICIS news)--China’s Zhejiang Yuandong Chemical Fibre Group has shut its 600,000 tonne/year No 2 purified terephthalic acid (PTA) unit on 20 June for two weeks of scheduled maintenance, a company source said on Monday.
“The 600,000 tonne/year No 3 PTA line is due to come off line for two weeks of maintenance after the completion of No 2's [maintenance],” the source said.
“Yuandong has cut half of our contract volumes in June due to the large scale shutdown,” a Zhejiang based polyester producer said.
Given the supply crunch, Yuandong has also shut its downstream 400,000 tonne/year polyester short staple unit in early June in line with the shutdown of its upstream unit and also due to the poor margins in short staple production.
Earlier on 15 June, the company had just completed a 10-day turnaround at its 600,000 tonne/year No 1 Eastman proprietary terephthalic acid (EPTA) unit.
Due to news of the firm's shutdown - and also a jump in PTA futures pricing - China’s domestic PTA prices rose to around yuan (CNY) 7,150-7,200/tonne ($1,046-1,054/tonne) EXW (ex-warehouse) in eastern China on Monday, up by CNY150/tonne from last Friday, according to the prices assessed by ICIS.
Zhejiang Yuandong is one of the largest PTA and polyester producers in China.
The firm operates two PTA units with a capacity of 1.2m tonnes/year, a EPTA plant with a capacity of 600,000 tonne/year and also downstream polyester units with a total capacity of 800,000 tonnes/year, all of which are located in Shaoxing, Zhejiang province.
($1 = CNY6.83)
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