China’s Henan Shunda shuts acetic acid line on feedstock shortage

21 January 2011 02:40  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Henan Shunda shut its 400,000 tonne/year acetic acid plant in Zhumadian, Henan province, on 19 January due to feedstock carbon monoxide (CO) supply shortage, sources close to the company said on Friday.

“They shut the plant on Wednesday night because of a shortage of CO,” a source said in Mandarin, adding that the plant was expected to resume operations around the middle of February.

The outage contributed to a stable-to-firm outlook on pricing although prices were depressed by the supply surplus conditions prevailing in the market.

Domestic acetic acid prices continued to decline by yuan (CNY) 50/tonne ($7.58/tonne) to CNY2,600-2,850/tonne ex-tank in the eastern region this week.

Prices were perceived to have hit bottom, prompting some producers to raise offers by CNY100/tonne, but the market reaction was largely subdued.

($1 = CNY6.59)

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By: Helen Lee
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