14 June 2012 08:53 [Source: ICIS news]
The line, which mainly produces polyethylene terephthalate (PET) bottle chips, was shut on 14 June, the source added.
“The cost of producing PET bottle chip is too high; we will make more profit if we sell the feedstock PX [paraxylene], so we shut the line,” the source said.
PX is used to produce purified terephthalic acid (PTA), which is a co-feedstock along with monoethylene glycol (MEG) for polyester products.
The total polyester capacity of the company is 500,000 tonnes/year. The company has another three lines at the same site, with a combined capacity of 400,000 tonnes/year, which are all shut because of high feedstock PTA and MEG costs, the source added. The exact shutdown dates for the three lines were not immediately available.
The prices of PTA and MEG in east China were at yuan (CNY) 7,050-7,100/tonne ($1,110-1,118/tonne) and CNY 6,350-6400/tonne respectively on 14 June, while PET prices were at CNY9,000-9,100/tonne on the same day, according to Chemease, an ICIS service in China.
($1 = CNY6.35)
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