S Korea’s Taekwang may cut Ulsan ACN output in Nov on weak demand

26 October 2012 04:42  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s Taekwang Petrochemical will consider cutting production at its 290,000 tonne/year acrylonitrile (ACN) plant at Ulsan next month if market conditions do not improve, a company source said on Friday.

“Market conditions are very weak and we will consider reducing the operating rate further to below 80% of capacity in November,” the source said.

The plant is currently running at 95% of capacity, the source said.

ACN prices have been falling because of weak demand and oversupply, industry sources said.

Traders have been offloading excess stocks from Europe and the US into Asia at competitive rates, further pressuring prices lower.

In the week ended 19 October, ACN prices were at $1,700-1,900/tonne (€1,309-1,463/tonne) CFR (cost and freight) northeast (NE) Asia, down by about $100/tonne from the previous month.

($1 = €0.77)

By: Helen Yan
+65 6780 4359

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