S Korea’s Asacco cuts run rate at Ulsan VAM plant to 80-90%
01 March 2012 11:11 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>South Korea’s Asia Acetyls Co (Asacco) has cut operating rates at its 210,000 tonne/year vinyl acetate monomer (VAM) plant in Ulsan to 80-90% of capacity this week on the back of high feedstock costs, a company source said on Thursday.
The plant was operating at full capacity previously, the source said.
“Unless VAM prices increase further, major VAM producers will have to lower operating rates because variable costs cannot be met,” said a second company source.
Asacco – a joint venture between UK’s BP, US’ Dow Chemical and South Korea’s Samsung – hiked its VAM spot prices for March shipments by $100/tonne (€75/tonne) to take into account the high feedstock costs.
Other major VAM producers in the Asian market include US-based Celanese, China’s Sichuan Vinylon Works, Japan’s Showa Denko and Japan VAM & Poval, Taiwan’s Dairen Chemical Corp. and Saudi Arabia’s International Vinyl Acetate Co (IVC).
($1 = €0.75)By: Helen Lee+65 6780 4359
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