Japan’s Mitsui Chemicals shuts Osaka IPA unit

09 July 2012 05:18  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Mitsui Chemicals has shut its 33,000 tonne/year isopropanol (IPA) facility in Osaka late last week as low demand and rising feedstock costs have hurt margins, a source close to the company said on Monday.

The facility is likely to resume operations on 16 July, the source added.

“Feedstock costs are getting higher. Unless IPA prices go up further, many of the plants will have to continue to run at reduced rates,” a trader said.

IPA spot prices rose by $30/tonne (€24) to $1,170-1,190/tonne CFR (cost & freight) NE (northeast) Asia during the week ended 6 July after feedstock acetone and propylene costs gained by $30-45/tonne over three straight weeks, according to ICIS data.

($1 = €0.82)

By: Yeow Pei Lin

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