21 June 2012 11:32 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Suzhou Changle shut its 90,000 tonne/year expandable polystyrene (EPS) plant in Jiangsu, eastern China on 21 June, a company source said on Thursday.
Weak downstream demand and poor profits are the main reasons for the shutdown, as well as the traditional Dragon Boat Festival holiday break, the source added.
Prices of ex-works general grade EPS are currently at yuan (CNY) 10,200–10,300/tonne ($1,604–1,619/tonne). Domestic feedstock styrene monomer (SM) prices are at CNY9,450–9,500/tonne ex-tank Zhangjiagang.
The resulting price gap is CNY750–800/tonne – lower than the normal fixed cost of about CNY1,000/tonne, resulting in poor profits.
The plant will restart on Monday 25 June, after the Dragon Boat Festival, the source added.
($1 = CNY6.36)
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