China’s Liaoning North Chemical restarts MEG plant on 8-9 Sept

10 September 2012 05:14  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Liaoning North Chemical has restarted its 200,000 tonne/year monoethylene glycol (MEG) unit at Panjin following a shutdown on 1 August for catalyst change, a company source said on Monday.

The unit was restarted on 8-9 September, the source said.

The shutdown resulted in a total MEG production loss of around 13,000-14,000 tonnes, according to the source.

The domestic MEG prices has been largely on an uptrend since August, driven by stronger speculative trading activity following shutdowns of plants such as those of SABIC’s affiliate firm Eastern Petrochemical (SHARQ), Kuwait’s EQUATE and some of China’s major MEG producers including Liaoning North Chemical, traders said.

SHARQ's 700,000 tonne/year MEG unit at Al-Jubail in Saudi Arabia was shut for maintenance early September, whereas EQUATE has said it shut its 550,000 tonne/year No 1 MEG plant in Shuaiba for an estimated period of around 16 weeks following a fire that erupted near the facility.

In light of the plants’ shutdown, the market players looked to stock up cargo, traders added.

MEG spot prices were assessed at yuan (CNY) 8,170-8,200/tonne ($1,289-1,293/tonne) ex-tank east China on 7 September, up by 12% from the prices on 1 August, according to Chemease, an ICIS service in China.

Liaoning North Chemical is subsidiary to China North Industries Group.

($1 = CNY6.34)


By: Jenny Jin

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