China's Fushun Petrochemical restarts MEK plant at reduced rates

02 July 2012 08:52  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Fushun Petrochemical is currently operating its 30,000 tonne/year methly ethyl ketone (MEK) facility in Liaoning province at about 60-70% of capacity after ending a shutdown that lasted about seven months last week, a company source said on Monday.

The company is rebuilding its inventory and plans to resume domestic sales from mid- or second-half July, the source added.

Fushun Petrochemical may also have 1,000 tonnes of MEK available for export this month, traders said.

“The producer is likely to continue to keep the run rates low because of the poor downstream demand," a trader said.

It shut its facility in November last year because of weak margins and a shortage of feedstock C4 supply. Its second 25,000 tonne/year MEK line was shut on 25 May for maintenance and no restart date is as yet available, the company source said.

The sentiment of sellers in the Chinese domestic market was more upbeat on Monday following a surge in crude futures on 29 June.

Chinese traders raised their offers by yuan (CNY) 100/tonne ($16/tonne) to CNY7,900-8,100/tonne ex-tank in east China and CNY8,300-8,500/tonne ex-tank in south China.

($1 = CNY6.35)

By: Yeow Pei Lin

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly