01 July 2011 08:17 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s Samsung BP Chemicals is planning to shut its 470,000 tonne/year acetic acid unit at Ulsan for debottlenecking in mid-September, a company official said on Friday.
The debottlenecking will take around a month and will raise the unit’s capacity to 570,000-600,000 tonnes/year, the source added.
The shutdown should have a minimal impact on the market as it is a planned shutdown, according to the official.
“We will need slightly more than 30,000 tonnes/year of [additional] methanol [feedstock for the increase in acetic acid production],” said the source.
The company is looking to buy some spot acetic acid cargoes ahead of the shutdown.
Offers of August-loading acetic acid spot cargoes from China were heard at $520-540/tonne (€359-373/tonne) FOB (free on board) China, up by $20-40/tonne from July fixtures, but serious discussions have yet to begin, said market participants.
A separate company official said Samsung BP is monitoring price movements in the Chinese domestic acetic acid market.
Additional reporting by Helen Lee
($1 = €0.69)
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