China’s Shandong Haili Chemical Industry shut adipic acid lines
02 May 2012 09:10 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>China’s major adipic acid (ADA) producer Shandong Haili Chemical Industry shut its three ADA lines by turns from late April amid weak demand and falling prices, a company source said on Wednesday.
“One line was already shut on 20 April and the other two lines will be taken offline later. Each line will be shut for ten days,” the source said.
Each of the three ADA lines has a capacity of 75,000 tonnes/year and all three lines are located in Zibo, eastern Shandong province, said the source.
The shutdowns are in line with Shandong Haili’s planned reduction of its ADA operating rates by 225,000 tonnes/year in late April because of squeezed margins.
Asia’s ADA prices for Chinese and Ukrainian cargoes fell to $1,600-1,650/tonne (€1,216-1,254/tonne) CFR (cost & freight) NE (northeast) Asia in the week ended on 2 May, down by $80/tonne week on week, according to ICIS pricing.
Adipic acid is primarily used in the production of nylon 6,6, as well as in the manufacturing of polyurethanes which are used for making shoe soles and polyester resins. Nylon 6,6, is used to make products such as tyre cord.
The major adipic acid producers in China include PetroChina Liaoyang Petrochemical and Shandong Hongye Chemical.
($1=€0.76)By: Judith Wang+65 6780 4359
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