China’s Jiangsu Zhengdan Chemical halts solvent oil unit output

08 May 2012 11:33  [Source: ICIS news]

SINGAPORE (ICIS) – China’s Jiangsu Zhengdan Chemical Industry has halted production at its 120,000 tonne/year aromatic solvent oil plant at Zhenjiang, Jiangsu, since 7 May because of poor demand and high inventories, a company source said on Tuesday.

The company will decide when to restart the plant, depending on demand conditions, said the source.

Zhengdan Chemical produced 4,500 tonnes of solvent oils every month at the Zhenjiang plant before production was halted, according to the source. 

Many buyers are expecting cuts in solvent oils prices in the coming days as crude prices are falling, traders said.

The prices in east China are at yuan (CNY) 8,700-8,800/tonne ($1,381-1,397/tonne) for No 100 solvent oils and CNY8,300-8,400/tonne for No 105 solvent oils on 8 May, down by CNY100-200/tonne and CNY200-300/tonne on 30 April, respectively, according to C1 Energy, an ICIS service in China.

($1 = CNY6.30)

By: Kim Lu
+65 6780 4359

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