17 January 2011 06:04 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Hanbang Petrochemical on 15 January started up its new 600,000 tonne/year purified terephthalic acid (PTA) plant in Jiangyin city, Jiangsu province, a company source said on Monday.
“The plant was successfully started up, after more than one year of delays,” the source said.
The company has ramped up the unit’s operating rate to around 80%, but has not achieved on-spec production yet, he added.
The first batch of output would be supplied to Hanbang’s downstream 300,000 tonne/year polyethylene terephthalate (PET) bottle chip unit and polyester maker Jiangsu Sanfangxiang Group’s 800,000 tonne/year polyester staple fibre (PSF) units, said a trader.
The start-up would greatly relieve the current supply shortage in the Jiangyin area, which is an important production hub of PSF and PET bottle chips in China, the trader added.
Nearly 30% of China’s PSF and PET bottle chip capacities are located in Jiangyin city.
“We will go for the same pricing mechanism that other Chinese PTA majors adopt, once our supply becomes stable,” the company source said.
However, Hanbang’s product would be sold at slightly below spot market prices for the first one or two months, according to the source.
Spot PTA prices in China were assessed at around yuan (CNY) 10,600/tonne ($1,608/tonne) on 14 January, ICIS data showed.
($1 = CNY6.59)
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