10 April 2012 06:44 [Source: ICIS news]
SINGAPORE (ICIS)--China’s CNOOC and Shell Petrochemicals Co (CSPC) is planning to restart its 320,000 tonne/year monoethylene glycol (MEG) plant at Huizhou in Guangdong province, south China, this week after shutting it for three weeks, a company source said on Tuesday.
The source was unable to specify the exact date of the restart.
The plant was taken off line on 21 March for a catalyst change, the source said.
The shutdown had a limited impact on China’s MEG spot market as China’s port inventory level remains high, the source said.
China’s port inventory of MEG is at a historical high of 850,000 tonnes, according to Chemease, an ICIS service in China.
The spot prices of MEG in south China were at yuan (CNY) 7,900-7,950/tonne ($1,252-1,260/tonne) ex-tank on 9 April, while prices in east China were at CNY7,180-7,230/tonne ex-tank on the same day, according to Chemease.
The spot prices in south China are likely to fall in the short term because of the restart of the plant, which will lead to an increase in supply, and the price gap between south and east China, a trader said.
($1 = CNY6.31)
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