India’s Maize Products cuts sorbitol plant op rate to 60% capacity

14 June 2012 10:25  [Source: ICIS news]

SINGAPORE (ICIS)--India’s Maize Products has reduced the operating rate at its 1,000 tonne/year sorbitol plant in Ahmedabad, Gujarat state, from 90% to 60% capacity because of a hydrogen gas shortage, a company source said on Thursday.

Hydrogen gas is required for the hydrogenation process in the manufacture of sorbitol.

The plant was operating at 90% capacity before the reduction because it had not fully recovered from a previous hydrogen supply shortage, which was resolved three weeks ago, said the source.

Maize Products is maintaining its domestic offers at Indian rupees (Rs) 34/kg ($0.61/kg) ex-factory, but it will focus less on exports in view of the potential tightening of supply, according to the source.

“We don’t think we can supply [export orders] in time,” said the source.

The shortage in hydrogen supply is not expected to affect Indian sorbitol prices in the near future as producers’ inventory levels are “healthy”, according to market participants.

However, it is unclear when the hydrogen supply issue will be resolved, said the participants.

($1 = Rs55.58)


By: Jasmine Khoo
+65 6780 4359



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