CNOOC-Kings to run reduced rates at Huizhou PX unit to Feb’11

09 December 2010 11:15  [Source: ICIS news]

ZHUHAI, China (ICIS)--CNOOC-Kings will maintain reduced operating rates of around 70-80% at its 900,000 tonne/year Huizhou paraxylene (PX) facility until February 2011, a company source said on Thursday.

“We continue to have PX purity issues at the plant and this is likely to last until the Chinese New Year,” he said.

CNOOC-Kings ran into production problems at the end of September and had previously reduced contractual molecules to downstream purified terephathalic acid (PTA) makers – Xianglu Petrochemical and BP.

The company has been operating the facility at around 70-80% since, producing 99.5% purity PX, said the source.

Standard traded cargoes of PX in Asia is of 99.7% purity but downstream end-users can generally accept parcels of 99.5% purity for PTA production.

Meanwhile, the company remains in negotiations for 2011 term molecules with its buyers on a 50% Asia Contract Price/50% spot average of published CFR (cost and freight) Taiwan prices, minus small discounts to parity.

A Middle East-based PX maker has finalised most of its term contracts for 2011 at parity to 50% ACP/50% spot average of published CFR Taiwan prices for cargoes delivered to China and south Korea. Molecules delivered to Pakistan were said to have been sold at small discounts.

To discuss issues facing the chemical industry go to ICIS connect
Read John Richardson and Malini Hariharan's Asian Chemical Connections blog

By: Bohan Loh
+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

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index