30 August 2012 06:05 [Source: ICIS news]
SINGAPORE (ICIS)--Shell Chemicals will shut its 75,000 tonne/year isopropanol (IPA) plant on Pulau Bukom in ?xml:namespace>
The shutdown will worsen the current product shortages and boost spot prices in
“Shell is putting its customers on allocation in September and October. We are trying to cover our requirements from alternative sources but it is difficult to get offers," a buyer in southeast Asia said.
Shell is not immediately available to comment on the issue.
Supplies in Asia have tightened since August because of an ongoing 50-day shutdown at Japanese producer JX Nippon Oil & Energy’s 85,000 tonne/year
“With IPA prices going up and margins improving, hopefully some producers will increase their production rates next month,’’ a trader said.
IPA spot prices were at $1,310-1,330/tonne (€1,048-1,064/tonne) CFR (cost and freight) SE (southeast) Asia during the week ended 24 August, up by $70/tonne from levels a month ago, according to ICIS pricing data.
($1 = €0.80)
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