APIC ‘11: China power shortage weakens toluene, mixed-xylenes demand

26 May 2011 14:44  [Source: ICIS news]

FUKUOKA, Japan (ICIS)--Demand for toluene and mixed xylenes in southern China has weakened as downstream plants are operating at reduced rates because of an electricity shortage, sources at an industry conference said on Thursday.

Demand from the downstream solvents sector is currently weak, as several smaller-sized plants are not receiving enough electricity to run properly, sources said.

Bigger plants and refineries are operating normally, as some of them have their own power-generating sources, they added..

China is experiencing a power shortage as a result of consumption outstripping demand, which is most acute during the summer months, a producer said.

Sources were speaking on the sidelines of this year’s Asia Petrochemical Industry Conference (APIC), which is being held in Fukuoka, Japan.

Because of the weak demand for toluene in southern China, inventory levels there have risen to around 40,000 tonnes, close to eastern China’s stocks, which are at about 50,000 tonnes.

Traditionally, stocks in eastern China are higher than those in the southern part of the country, as the former is a larger market.

There are also many cargoes moving from eastern China to the south, according to a South Korea-based trader.

This year’s APIC runs from 26-27 May.

For more on toluene visit ICIS chemical intelligence
Read John Richardson and Malini Hariharan’s Asian Chemical Connections blog

By: Mahua Chakravarty
+65 6780 4359

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