S Korea’ OCI plans PA units shutdown for maintenance by end-Oct

30 August 2012 07:15  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s OCI Company plans to shut its Pohang-based No1 and No 2 phthalic anhydride (PA) units with a 20,000tonne/year capacity each for maintenance toward the end of October, a company source said on Thursday.

The No.1 unit will be shut for about three weeks for catalyst change while the No.2 unit will be off line for about a week for maintenance.

The company was running both the units at full capacity to build up inventory to maintain supply to their downstream plasticizer plants and domestic market during the shutdown period, the source added.  

The company was keeping its 40,000 tonne/year No 3 PA unit off line since September last year due to narrow spread between feedstock orthoxylene (OX) and PA prices, the source said.

The price gap between PA and OX stood at $5-10/tonne (€4-8/tonne) based on prices assessed in the week ended 24 August, according to ICIS data.

PA was assessed at $1,395-1,420/tonne CFR (cost and freight) China Main Port (CMP), while OX stood at $1,390-1,410/tonne CFR NE (northeast) Asia.

The company has no plans to restart the No.3 unit with the current OX and PA price spread, the source added.

By: Hazel Goh

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