Taiwan’s FCFC shuts Mailiao No 3 aromatics unit for maintenance

21 October 2011 07:39  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Formosa Chemicals and Fibre Corp (FCFC) has shut its 870,000 tonne/year No 3 aromatics unit at Mailiao for a scheduled turnaround and debottlenecking that will take 45 days, a company source said on Friday.

“The unit will be restarted in early December,” the source added.

The paraxylene (PX) capacity of the unit will be expanded to 930,000 tonnes/year, he said.

Meanwhile, FCFC is looking to procure around 10,000 tonnes of November PX shipments to plug the supply shortfall at its purified terephthalic acid (PTA) facilities in Taiwan, according to the source.

“We are looking around for cargoes in the low $1,400s/tonne level. Current PTA prices can only support PX prices at this level,” the source said.

“We will draw down inventory levels if PTA margins cannot be maintained,” the source added.

PTA spot prices fell by $60-65/tonne (€43-47/tonne) on 20 October to $1,080-1,120/tonne CFR (cost & freight) CMP (China Main Port) amid worries over the eurozone debt crisis. Deals for South Korean PTA were heard transacted at as low as $1,040/tonne CFR CMP late into the evening.

PX prices dropped by $82/tonne to $1,473-1,483/tonne CFR Taiwan and/or CMP as traders cut offers to liquidate long positions.

($1 = €0.73)

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By: Bohan Loh
+65 6780 4359

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