China’s Shanghai Gaoqiao-SK Solvents shuts solvent oil plant

26 October 2011 10:11  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Shanghai Gaoqiao-SK Solvents shut its 50,000 tonne/year D-series (de-aromatics) solvent oil plant at Shanghai on 24 October because of poor demand, a company source said on Wednesday.

The high cost of feedstock is another reason behind the shutdown, the source added.

The company's sales would not be affected by the production halt as it has ample stocks on hand, he said.

The company plans to resume solvent oil production in November and expects demand to strengthen by then, he said.

Traders said many producers are cutting production in view of weak demand.

The prices of D-series solvent oils are at yuan (CNY) 9,400-9,600/tonne ($1,478-1,509/tonne) on 25 October and have remained largely flat over the past three weeks, they said.

Shanghai Gaoqiao-SK Solvents Co is a joint venture between Sinopec’s Gaoqiao Petrochemical and South Korea’s SK Energy. It produces D40, D60, D80, D100 and D130 products.

($1 = CNY6.36)

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By: Kim Lu
+65 6780 4359

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