11 January 2012 03:57 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Shaoxing Yuandong Petrochemical is seen to be preparing to start up its purified terephthalic acid (PTA) unit as the company is buying feedstock paraxylene (PX) on the spot market, traders said on Wednesday.
“If everything goes well, we will start up our 1.4m tonne/year PTA unit in March-April,” said a source from Shaoxing Yuandong.
The company operates three 600,000 tonne/year PTA units at Shaoxing in Zhejiang province.
The source added that its recent spot purchases are also due to a lower PX contract coverage in 2012, but declined to provide a percentage estimate. Shaoxing Yuandong’s PX contract coverage was nearly 100% of its monthly 100,000-tonne requirement in 2011, according to market sources.
The Chinese PTA maker was heard to have purchased at least 30,000 tonnes of February PX shipments from various northeast Asian traders over the past two weeks and is one of the key drivers for the recent jumps in spot PX prices.
Spot PX prices have increased by nearly 7% since the beginning of the year and stood at $1,592.50/tonne (€1,242.15/tonne) CFR Taiwan and/or CMP (China Main Port) on 10 January, according to ICIS.
($1 = €0.78)
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