18 October 2010 10:19 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s KP Chemical Corp has announced a $200/tonne (€142/tonne) hike in its purified isophthalic acid (PIA) offer prices, effective from 1 November, amid surging raw material costs and tight supply, a company source said on Monday.
November shipment cargoes would be targeted at around $1,500/tonne CFR (cost & freight) northeast Asia, the source added.
The recent uptrend in the feedstock mixed xylenes market, which caused the product’s values to jump by $150/tonne to above $1,000/tonne, has exerted strong upward pressure on PIA prices, he said.
“We’re confident of the increase, as PIA supply has been short due to our recent shutdown,” said the source.
KP Chemical, which is Asia’s largest PIA producer, recently restarted its 200,000 tonne/year PIA unit in Ulsan, South Korea, on 14 October, after it was shut for two weeks of maintenance.
The company also runs two purified terephthalic acid (PTA) plants at the same site, with a total capacity of 800,000 tonnes/year.
PIA is used as a modifier in downstream polyethylene terephthalate (PET) bottle-grade resins and as an additive in coatings.
($1 = €0.71)
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