China’s Shandong Haili runs Zibo adipic acid complex at 60%

09 November 2010 03:12  [Source: ICIS news]

SINGAPORE (ICIS)--China's Shandong Haili has been running its 225,000 tonne/year adipic acid complex in Zibo at 60% since October due to the emissions control targets set by the government, a company source said on Tuesday.

The Chinese government controls on emissions and power consumption had caused some of the chemical factories to remain shut or operate at low levels. The controls are expected to be in place until next month.

The company currently had no material available for exports as a result of lower operating rates and also because of higher domestic prices, the company source said.

Supply was tight due to several production cuts last month including Haili’s and Xinjiang Dushanzi Tianli’s, industry sources said.

Spot adipic acid values were heard at $2,600-2,700/tonne (€1,872-1,944/tonne) CFR (cost and freight) NE (northeast) Asia this week, according to ICIS. This represents an increase of around 6% since the beginning of October.

Adipic acid is primarily used in the production of nylon 6,6, as well as in the manufacturing of polyurethanes which are used in shoe soles and polyester resins. Nylon 6,6, is used to make tyre cord, as well as other products.

The major adipic acid producers in China include PetroChina Liaoyang Petrochemical and Shandong Hongye.

($1 = €0.72)

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By: Heng Hui
+65 6780 4359



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