China's CSPC shuts polyol unit for maintenance

30 March 2012 13:20  [Source: ICIS news]

SINGAPORE (ICIS)--China’s CNOOC and Shell Petrochemicals Co (CSPC) shut its polyether polyol plant on 23 March for a two-week maintenance, market sources said on Friday.

The unit has a nameplate capacity of 210,000 tonnes/year and is located in southern China’s Guangdong province.

The company’s upstream propylene oxide/styrene monomer (PO/SM) unit will continue to operate. As a result, CSPC may have more spot PO cargoes to sell on the open market, said industry observers.

This could amount to a few thousand tonnes of spot availability entering the market and could add downward pressure on domestic PO prices in China, which are already slipping to yearly lows, they added.

Late in the week, PO prices fell by yuan (CNY) 400/tonne ($64/tonne) to CNY11,900–12,400/tonne DEL (delivered) east China, according to ICIS Pricing.

CSPC officials have declined to comment.

The company’s upstream PO/SM unit can produce 320,000 tonnes/year of PO and 700,000 tonnes/year of SM annually.

CSPC is a 50:50 joint venture between oil major China National Offshore Oil (CNOOC) and Anglo-Dutch major Shell Chemicals.

$1 = CNY6.30

By: Chan Jingyi
+65 6780 4359

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