28 December 2011 08:32 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Yangzhou Xinye Chemical shut down its 400,000 tonne/year sulphuric acid plant in Jiangsu province on 26 December for maintenance because of poorer margins, a company source said on Wednesday.
The price of sulphur, a feedstock of sulphuric acid, is still high, squeezing the margins of sulphuric acid producers who are still selling material at low levels, the source said.
Sulphur prices were at yuan (CNY) 1,850-1,900/tonne ($292-300/tonne) DEL (delivered) this week in Jiangsu, while 98% sulphuric acid prices were at around CNY500/tonne EXW (ex-works). Sulphuric acid prices have to be about two-thirds of sulphur prices for producers to break even.
The plant will not be restarted until after the Lunar New Year holiday, the source added.
The plant was running at around 80% and was producing 900 tonnes/day of sulphuric acid before it was shut, the source added.
($1 = CNY6.33)
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