24 May 2012 07:49 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Wudi Xinyue Chemical plans to shut its 120,000 tonne/year propylene oxide (PO) plant at Binzhou in Shandong province on 24 or 25 May because of weak demand, a company source said on Thursday.
The plant was brought on stream in April this year.
PO producers in China are struggling with a rapid price decline in the past two weeks that was caused by weak demand, market players said.
Domestic PO prices are near producers’ breakeven point, the players added.
Wudi Xinyue thus decided to shut its plant in consideration of weak demand and its costs, the source said.
The producer has a separate 80,000 tonne/year plant at the same site that is “operating smoothly”, the source added.
Spot PO prices in China were at yuan (CNY) 10,700-10,950/tonne ($1,690-1,730/tonne) DEL (delivered) north China on Thursday, down from CNY11,950-12,200/tonne on 10 May, according to data from Chemease, an ICIS service in China.
($1 = CNY6.33)
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