15 March 2012 04:20 [Source: ICIS news]
MELBOURNE (ICIS)--China’s Dragon Sky Chemical is planning to reduce the operating rate at its 50,000 tonne/year butyl acetate (butac) plant in Shanghai to about 60-70% capacity because of slow demand for the solvent acetate, a company source said on Thursday.
“We plan to reduce output from the end of this month,” the source said.
“Both domestic and export demand for butac has been quite slow,” the source added.
The domestic butac prices in east China were at yuan (CNY) 8,800-8,900/tonne ($1,390-1,406/tonne) EXW (ex-works) this week, compared with CNY9,000-9,200/tonne EXW a month ago.
Butac, which is derived from acetic acid and n-butanol (NBA), is mainly used in the manufacturing of paints and coatings for the furniture, construction and automotive sectors.
Other butac manufacturers in Asia include Korea Alcohol Industrial in South Korea, Celanese in Singapore and Kyowa Hakko Chemical in Japan.
($1 = CNY6.33)
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