South Korea's ISU Chem to restart IPA plant in October

28 September 2012 10:28  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s ISU Chemical is expected to restart its 30,000 tonne/year isopropanol (IPA) line in Ulsan in early October following a recovery in regional demand, a source close to the company said on Friday.

The unit was shut since the end of May as a result of poor demand, but the market conditions have improved for the regional producers since the end of August as several plant shutdowns in Asia have led to tight supply.

The shortage of prompt cargoes drove spot prices in southeast Asia to $1,400-1,420/tonne (€1,078-1,093) CFR (cost and freight) SE (southeast) Asia in the week ended 21 September, the highest level in more than a year.

However, market participants expect the regional supply to increase in October as several plants are scheduled to complete their maintenance between the end of September and in early October.

“We are more cautious as prices may start to correct in the later half of October when supply is back to normal,’’ a buyer said.

ISU Chemical also operates a second 30,000 tonne/year line on the same site in Uslan.

($1 = €0.77)

By: Yeow Pei Lin

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