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)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections