Iran’s Fanavaran may cut acetic acid output or shut production

23 April 2012 09:06  [Source: ICIS news]

SINGAPORE (ICIS)--Iran’s Fanavaran Petrochemical may be forced to cut production at its 150,000 tonne/year acetic acid plant at Bandar Imam, or shut the unit down in the near term because of logistics problems posed by Western sanctions, a company official said on Monday.

The company, along with other Iran-based producers like Zagros Petrochemical, has been encountering difficulties in securing vessels since March because international sanctions have tightented against the Middle Eastern country.

“Indian customers are asking us for cargoes but we have none for April shipment because our problem is finding suitable vessels as a result of the sanctions,” the company official said, adding that previously sold acetic acid cargoes could be delayed.

Fanavaran Petrochemical’s acetic acid plant is currently operating at 90-95% of capacity, he said.

“We are finding solutions now but we may have to opt for operating rate cut or shut the plant down in the future but we don’t know when,” said the company official.

Sources close the company said that cutting run rates or shutting down production at the Bandar Imam acetic acid plant may happen by the middle of May.

Fanavaran Petrochemical supplies 10,000 tonnes of acetic acid per month to India, according to industry sources.

Major acetic acid producers in Asia include US-based Celanese, UK’s BP, China’s Jiangsu Sopo, Shanghai Wujing, Yankuang Cathay Coal Chemicals, Henan ShunDa Chemical and Hebei Yingdu Gasification Co. Ltd, Taiwan’s Chang Chun Petrochemicals, India’s GNFC and Saudi Arabia’s International Acetyl Company (IAC).

By: Helen Lee
+65 6780 4359

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