09 May 2012 08:14 [Source: ICIS news]
The shutdown is expected to tighten the domestic supply further, Chinese players said.
Hebei Zhongjie Petrochemical and Lanzhou Petrochemical each shut a line in April because of a shortage of feedstock and weak margins, market sources said.
The two lines have a combined capacity of 60,000 tonnes/year and both lines are still shut, according to market sources.
The fall in MEK supply pushed up domestic prices for a fifth week as producers raised offers to reflect their tight balance, said traders.
Offers in south China rose to yuan (CNY) 9,900-10,100 ($1,569-1,601/tonne) ex-tank on 9 May, up from CNY9,600-9,850/tonne ex-tank on 4 May, according to traders.
“Demand has not improved much but we expect prices to go up further as supply will get even tighter in the second half of May,’’ a trader said.
($1 = CNY6.31)
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