10 January 2011 11:28 [Source: ICIS news]
LONDON (ICIS)--Zagros Petrochemical unexpectedly shut its two methanol lines at Assaluyeh in Iran on Friday, a source with marketers Iran Petrochemical Commercial Company (IPCC) said on Monday.
The shutdowns were initiated after an unknown technical error. The source said it was hoped one of the plants would be back on stream by either tomorrow or January 12, but admitted it had no idea when the second line could be restarted.
The two lines each have a capacity of 1.65m tonnes/year.
Although the plants represent a significant volume of lost methanol, sources said previously that the majority of Zagros’ material goes to Asia, not Europe, and this would reduce the impact on European prices.
However, if prices in Asia rose as a result of the outage, this could potentially affect the global market, sources said. The US and European markets often follow the lead of the Asia market, which is the largest region by consumption.
“If it’s out for a long time then it will certainly have an impact, but just a few days doesn’t really matter,” said one European producer on Friday.
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