China's Dezhou Detian Chem delays IPA unit start-up to Sept
03 September 2012 06:41 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>China’s Dezhou Detian Chemical has postponed the start-up of its 50,000 tonne/year acetone-based isopropanol (IPA) unit at Dezhou in Shandong province to September from August, a source close to the company said on Monday.
The source did not give any reason for the delay.
Dezhou Detian Chemical is currently operating a 10,000 tonne/year plant at the same Dezhou site but the unit will be permanently shut down after the new IPA plant starts up.
Market players in China said the company is bringing the project on stream later possibly because of persistently weak demand from downstream end-users for applications such as paint and inks.
“Sales have been very slow in east China even though a lot of distributors no longer have any stock,” a China-based distributor said.
In the eastern province of Jiangsu, the current inventory levels are estimated to be at just 1,000-2,000 tonnes, significantly lower than the usual monthly level of around 10,000 tonnes, a China-based producer said.
Some sellers are hoping the domestic prices will increase at a faster pace this month after key supplier Yancheng Super Chemical shut its 50,000 tonne/year plant at Yancheng in Jiangsu province unexpectedly on 26 August.
The outage may last for about a month.
Stronger feedstock acetone prices will also help to support prices, Chinese sellers said.
IPA prices were at yuan (CNY) 9,600-9,650/tonne ($1,512-1,520/tonne) ex-tank east China at mid-day on 3 September, up by CNY100/tonne from prices on 31 August, according to Chemease, an ICIS service in China.
($1 = CNY6.35)By: Yeow Pei Lin
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