28 June 2012 07:27 [Source: ICIS news]
By Judith Wang
SINGAPORE (ICIS)--Spot adipic acid (ADA) values in Asia are still under pressure to decline because of poor demand, but a tightening of regional supply amid production cuts and delayed start-ups of new plants should help temper the price falls, industry sources said on Thursday.
“We are losing money when we sell. The prices are too low, and we have to cut output to avoid further losses,” a major Chinese ADA producer said.
Major Chinese ADA producers, including Shandong Haili, Shandong Hongye, are currently running their plants at reduced rates of around 70-80% in light of soft demand and falling
Meanwhile, around 440,000 tonnes/year of new ADA capacity in China that were supposed to come on stream in the first half of the year have been delayed because of the poor market conditions, industry sources said.
The start-ups of the new plants were pushed back to the second half of the year, they said.
Elsewhere in Asia, Asahi Kasei is operating its 120,000 tonne/year adipic acid plant at
“I hope the production cut can help the market to go up after dropping [for] so many weeks,” a trader said.
“Most buyers were adopting a wait-and-see stance because of the volatile crude prices and economic uncertainty. They will not actively buy cargoes, and just to cover their basic requirement,” a regional producer said.
Uncertainties in the global market amid the eurozone debt crisis,
The weak demand for
($1 = €0.80)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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