China’s Hubei Kehai to shut MAP unit amid bearish market

03 September 2012 09:19  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Hubei Kehai Technology Chemical Industry is planning to shut its 300,000 tonne/year monoammonium phosphate (MAP) unit at Zhongxiang in Hubei province on 4 September in view of the bearish MAP market, a company source said on Monday.

The company had shut the unit on 9 July for half a month in July because of low seasonal demand and restarted on 25 July, according to the source.

However, domestic MAP prices have declined continuously over past two months, so the company has to shut MAP unit again, the source added.

Domestic MAP Prices fell from yuan (CNY) 2,700/tonne ($425/tonne) on 1 June, to CNY2,450/tonne on 1 September, according to Chemease, an ICIS service in China.

The shutdown is expected to have little impact on the domestic MAP market, and producers expect stable prices, the source said.

MAP demand in August and September is likely to be lower compared with the same period in 2011, according to Chemease data.

Downstream nitrogen phosphorus potassium (NPK)  producers operated their plants at 40-50% of capacity on average in August, according to data from Chemease, according to the data.

($1 = CNY6.35)


By: Elly Zong



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