27 January 2011 08:04 [Source: ICIS news]
SINGAPORE (ICIS)--Asia’s largest adipic acid (ADA) producer Asahi Kasei is planning to shut its 120,000 tonne/year plant at Nobeoka in Japan’s Miyazaki prefecture for a month-long turnaround, beginning in May, a company source said on Thursday.
However, the exact date of the shutdown was not confirmed yet, the source said.
The source said current demand was strong but Asahi Kasei would have little spot material to offer after fulfilling its contract commitments.
The shutdown would put further pressure on supply as other plants in Asia were also scheduled for maintenance during the second quarter of the year, market players said.
ADA prices would likely remain firm as a result, they added.
The January ADA contracts were settled at $2,550–2,700/tonne (€1,862–1,971/tonne) CFR (cost & freight) northeast (NE) Asia, $30/tonne higher than December levels, according to producers and buyers.
ADA is used in the manufacture of nylon 6,6 and polyurethane (PU) as well as plasticisers, hexamethylene adipate and resins for shoe soles.
Other major producers of ADA in Asia include PetroChina Liaoyang Petrochemical and Rhodia.
($1 = €0.73)
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