China’s Rizhao Jiahong shuts etac plant for maintenance

26 April 2012 09:22  [Source: ICIS news]

MELBOURNE (ICIS)--China’s Rizhao Jiahong Biological Technology on 20 April shut its 100,000 tonnes/year ethyl acetate (etac) plant at Rizhao in Shandong province for maintenance, a company official said on Thursday.

The turnaround at the plant is expected to last one to two weeks, the official said.

Part of the reason for the plant shutdown is persistently slow demand for the solvent acetate, the official added.

“We have been under increasing pressure to raise etac prices because of our rising acetic acid costs, but demand is not there to support our higher price targets,” he said.

China has a total etac capacity of about 2m tonnes/year, accounting to more than half of the world’s etac supply.

Excess supply has curbed etac’s feedstock-led price gains, forcing most producers to operate with negative margins.

Upstream acetic acid prices have risen by 10% since early March to close at an average of $455/tonne (€346/tonne) FOB (free on board) China for the week ended 20 April. However, prices etac have risen by 0.3% over the same period to close at an average of $977.50/tonne FOB China, according to ICIS data.

Other etac producers in China include Jiangsu Sopo, Jiangmen Handsome Chemical Development, Shanghai Wujing Chemical and Shandong Jinyimeng Group.

($1 = €0.76)

By: Trisha Huang

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