Correction: Asia PX surges after Formosa pipeline blast

01 August 2011 10:05  [Source: ICIS news]

Corrected: In the ICIS news story headlined “Asia PX surges after FCFC refinery blast; concerns over supply” dated 1 August 2011, please read in the headline… Formosa pipeline blast… instead of… FCFC refinery blast… Please also read in the lead paragraph… Formosa Petrochemical Corp’s (FPCC) Mailiao refinery complex… instead of… Formosa Chemical & Fibres Corp’s (FCFC) Mailiao refinery… A corrected story follows:

SINGAPORE (ICIS)--Asia paraxylene (PX) prices surged by at least $60/tonne (€41/tonne) following the blast at Formosa Petrochemical Corp’s (FPCC) Mailiao refinery complex over the weekend, traders said on Monday.

Bids for September shipments surged to $1,630/tonne CFR (cost & freight) Taiwan and/or China Main Port (CMP) on Monday from $1,570/tonne CFR Taiwan and/or CMP on 29 July.

Selling indications were at $1,650/tonne CFR Taiwan and/or CMP, but no transactions were heard done.

Traders said there were concerns about a potential disruption in the supply of PX after the Taiwanese government ordered a “rotational closure” of the entire Mailiao refinery and petrochemical complex to thoroughly review safety standards.

Officials from Formosa Chemical & Fibres Corp (FCFC) said the company is running its No 2 and No 3 aromatics units, which have a combined nameplate capacity of 1.45m tonnes of PX per annum, normally.

However, they said they are waiting for further instructions from the government on which Mailiao-based units will be subject to “rotational closure”.

It is also unclear when FCFC will be able to restart its No 1 aromatics facility that has been shut since 13 May.

Yunlin county officials were expected to give FCFC permission to restart its No 1 unit in the week ended 29 July, but the recent spate of fires at the Formosa group’s Mailiao complex may delay the process, sources said.

($1 = €0.69)

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By: Bohan Loh
+65 6780 4359

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