Taiwan's FCFC to keep Loong-der No 2 PTA unit shut until end-Aug

13 July 2012 10:18  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Formosa Chemical and Fibre Corp (FCFC) plans to prolong the shutdown of its 400,000 tonne/year No 2 purified terephthalic acid (PTA) unit at Loong-der, until end-August, a company source said on Friday.

The No 2 plant - the smallest of the company’s four PTA facilities - was taken off line on 15 June for a planned month-long shutdown because of negative margins, the source said.

“We are still not able to cover our cost in July given the current hefty feedstock paraxylene (PX) prices,” the source said.

On Friday afternoon, PX prices were at $1,395-1,400/tonne (€1,144-1,148/tonne) CFR (cost and freight) China, while PTA values were at $990-1,000/tonne CFR China.

Since producing a tonne of PTA will require 660kg of PX, PTA producers have to factor in the current PX cost at $922/tonne. At current prices, the spread between PTA and PX stood at $73/tonne, much lower than the $130-150/tonne required by PTA producers to break even, market sources said.

($1 = €0.82)

By: Becky Zhang
+65 6780 4359

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