China’s DOP producers mull plant shutdowns on feedstock costs

14 May 2012 10:08  [Source: ICIS news]

SINGAPORE (ICIS)--Some dioctyl phthalate (DOP) producers in east China have either shut or are planning to take off line their plants this month as a result of high feedstock costs, industry sources said on Monday.

Producer in other parts of China are also considering to temporarily suspend production, a senior manager of a company in North China said.

The prices of feedstock 2-ethylhexanol (2-EH) and phthalic anhydride (PA) were at CNY12,325/tonne ($17,801/tonne) ex-works (EXW) and CNY11,700/tonne EXW respectively on 10 May, according to Chemease, an ICIS Service in China.

However, in March 2-EH was trading at CNY11,800/tonne and PA was at CNY 11,250/tonne.

The DOP price went down from CNY13,400/tonne in the second half of April to CNY 12950/tonne in east China on 10 May.

Domestic DOP prices fell further to CNY12,800/tonne in east China as of 14 May while 2-eh rose to CNY 12,200/tonne and PA fell to CNY11,500/tonne on 14 May, according to Chemease, an ICIS Service in China.

Apart from the high cost of feedstock, May to August in China is a weak demand period, which has led some producers to cut down on operations.

However, DOP imports in May are estimated to be 13,000 tonnes, which will result in high port inventory because normally traders hold up to 11,000 tonnes stocks at the ports, according to Chemease, an ICIS service in China.

Similarly, DOP stocks in domestic factories have gradually increased and the suppliers have been forced to reduce EXW (ex-warehouse) prices to ease inventory pressure.

DOP plants shutdown plan: 

 

 

 

Company

Capacity

Shutdown Time

Reason

Aekyung (Ningbo) Chemical Co Ltd

150,000.00

2012/5/2

lack of 2-eh

Zhejiang Weibo Chemical Co., Ltd

100,000.00

2012/5/7

high cost

ZheJiang QingAn Chemical Co., Ltd

150,000.00

2012/5/11

shutdown of PA plant

Jiangsu Hosen Chemical Co., Ltd

120,000.00

2012/5/14

routine examination


By: Phoebe Lu



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