China’s Shandong Xinyue restarts ECH plant on better margins

29 March 2012 06:16  [Source: ICIS news]

SINGAPORE (ICIS)--Shandong Wudi Xinyue Chemical, the second largest epichlorohydrin (ECH) producer in China, has  restarted its two ECH units with a total capacity of 65,000 tonne/year on 27 March, a company source said late on Wednesday.

Shandong Wudi Xinyue Chemical converted its whole three ECH units, with a total capacity of 95,000 tonne/year, to propylene oxide (PO) in October 2011, because PO was much more profitable at the time.

However, the producer decided to switch back two of the units to ECH this month as PO prices turned to a downtrend.

The new supply is expected to depress domestic China ECH prices.

ECH spot prices were assessed at yuan (CNY) 12,200-12,300/tonne ($1,940-1,955/tonne) DEL (delivered) east China on 28 March, compared to CNY14,300/tonne on 1 March, according to Chemease, an ICIS service in China.

($1 = CNY6.29)

By: Victor Shi
+65 6780 4359

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