China’s Tianjin Xingyuan Chemical shuts solvent oil unit

11 April 2012 09:29  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Tianjin Xingyuan Chemical shut its 50,000 tonne/year aromatic solvent oil plant at Tianjin for maintenance on 10 April, a company source said on Wednesday.

The producer has not decided how long the shutdown will last, the source said, adding that poor margins were another reason for the production halt.

The margins of producing solvent oils have been squeezed by high feedstock costs and weak demand, according to the source.

Although the shutdown is expected to decrease the supply of aromatic solvent oils in northern China by over 1,500 tonnes in April, it is unlikely to boost prices because of weak demand, traders said.

No 100 and No 150 solvent oils were traded at yuan (CNY) 8,800-8,900/tonne ($1,395-1,410/tonne) and CNY 8,650-8,750/tonne EXW (ex-works), respectively, in northern China on 10 April, unchanged from the previous day, according to C1 Energy, an ICIS service in China.

($1 = CNY6.31)

By: Kim Lu
+65 6780 4359

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