China's Sinopec SABIC Tianjin Petrochemical cuts Jan LLDPE output
09 January 2012 09:46 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>China’s Sinopec SABIC Tianjin Petrochemical expects to produce only around 26,000 tonnes of linear low density polyethylene (LLDPE) in January, about 13% lower than usual, because of current low product prices, a source close to the company said on Monday.
Its plant, located in northern China, typically produces 30,000 tonnes of the polymer each month, the source said.
The facility has a designed capacity of 300,000 tonnes/year, he said.
“The reason why [Sinopec] SABIC Tianjin Petrochemical cut down LLDPE film output may be because the prices were below cost,” the source said.
Spot LLDPE prices in northern China were assessed at yuan (CNY) 9,400-9,600 ($1,490-1,521/tonne) on Monday, according to Chemease, an ICIS service in China
The production cut is expected to spur buying of LLDPE in the region, traders said.
($1 = CNY6.31)
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