13 June 2012 04:55 [Source: ICIS news]
By Bohan Loh
Oriental Petrochemical Taiwan Co (OPTC) and China American Petrochemical Co (CAPCO) have sent requests to their PX supplier in
Officials from OPTC and CAPCO declined to comment when contacted by ICIS.
OPTC has shut its 400,000 tonnes/year T9 PTA unit in
CAPCO, on the other hand, took its 250,000 tonne/year PTA facility in
Asian PTA producers have largely been incurring losses since end-October 2011 because of soaring costs of feedstock PX, according to ICIS data.
There had been some cutbacks in PTA run rates during the first quarter of 2012 but PX will remain in tight supply with huge new PTA projects starting up this year.
“Hengli is still receiving part of its contracted cargoes via a small jetty that can allow a vessel to discharge 5,000 tonnes [of PX] every two to three days,” the source said.
The company expects to complete construction of six jetties at the site by September-October, when its two PTA units with a combined nameplate capacity of 4.4m tonnes/year are due to start up.
Meanwhile, another Chinese PTA producer Jiaxing Petrochemical had also deferred PX shipments of up to 40,000 tonnes in June because of delays in the start-up of its new 1.5m tonne/year project in
Deferments in contract shipments, coupled with expectations of further reduction in PTA run rates, will likely see July and August to be in long supply of PX, traders said.
“The length in supply might even extend into the September shipment month,” a market source said.
Spot PX prices hit a fresh 19-month low in the week ended 8 June at $1,231-1,233/tonne (€985-986/tonne) CFR (cost and freight) China Main Port (CMP), following plunging Brent crude futures amid worries over the unfolding eurozone debt crisis.
On Wednesday morning, bids for August shipments were at $1,150/tonne CFR Taiwan/Ningbo/Dalian, but no offers were heard.
In other parts of
($1 = €0.80)
Additional reporting by Becky Zhang
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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