China’s Chongqing Fuling Pengwei to keep PTA unit shut on flooding

26 July 2012 10:31  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Chongqing Fuling Pengwei will keep its 900,000 tonne/year purified terephthalic acid (PTA) plant at Chongqing shut until flooding at the Yangtze River abated, a company source said on Thursday.

The PTA plant halted production on 17-18 July, the source said.

“We have to shut the plant as feedstock paraxylene (PX) is not allowed to ship to the upstream of Yangtze River given the current severe flooding,” the source said.

PX is considered a dangerous chemical and is forbidden from bring transported via the Yangtze River during the flooding season, he said.

The river is currently at its highest level since 1981, according to media reports.

“Normally the flooding period lasts for a few days, but this year it is more serious,” the source from Chongqing Fuling Pengwei said.

The company has halted PTA shipments to customers in east China because of depleted stocks, the source said.

Some Zhejiang-based polyester makers are seeking available PTA cargoes from the spot market to plug the shortage following Pengwei’s shutdown, market sources said.

Chongqing Fuling Pengwei Petrochemical, a subsidiary of East Hope Group, is the only PTA producer located in southwestern China.

By: Becky Zhang
+65 6780 4359

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