China’s Tianjin Dagu to shut SM unit on benzene shortage

24 August 2012 07:13  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Tianjin Dagu Chemical plans to shut its 500,000 tonne/year styrene monomer (SM) unit in the beginning of September due to benzene shortage in north China’s Tianjin, a market source said on Friday.

The feedstock benzene supply is short because Tianjin Petrochemical shut its 400,000 tonne/year benzene plant on 15 August, according to the source.

The producer’s downstream 200,000 tonne/year acrylonitrile-butadiene-styrene (ABS) unit and 120,000 tonne/year expandable polystyrene (EPS) unit are running at just 20-30% of capacity, the source added.

Dagu Chemical has decided to cancel some contract supplies and will suspend spot sales in September.

SM prices in north China are expected to get a boost as a result of reduced supply, the source added.

By: Echo Chen

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