Mitsubishi Chemical plans end July restart for PTA plant in Haldia

02 June 2011 10:11  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Mitsubishi Chemical plans to restart its 800,000 tonne/year purified terephthalic acid (PTA) plant at Haldia in India around the end of July, a company source said on Thursday.

The plant was shut unexpectedly on 18 April and it was initially expected to remain shut for about 45 days.

However, the shutdown was longer than expected as “core facilities, including a compressor and agitator”, were damaged in a fire, the source said.

The company exported surplus stocks of feedstock paraxylene (PX) as a result of the plant’s prolonged shutdown.

A PX cargo for the second half of June was earlier heard sold by Mitsubishi Chemical at $1,500/tonne (€1,050/tonne) CFR (cost & freight) Taiwan/or CMP (China Main Port) to a South Korean trader.

Meanwhile, the demand in India for polyester remains weak after the traditional lull from April-May when manufacturing activity declines. PTA is the primary raw material for the production of polyester.

“The [plant's] shutdown has so far had little impact on the local PTA market because of the poor demand during the season,” an Indian polyester maker said.

Major PTA producer Indian Oil said on 26 May it was considering reducing the operating rates at its Panipat-based PTA plant because of poor downstream domestic demand.

($1 = €0.70)

Additional reporting by Bohan Loh

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By: Becky Zhang
+65 6780 4359

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