05 November 2012 10:24 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Shaoxing Yuandong Petrochemical plans to shut its 1.4m tonne/year No 4 purified terephthalic acid (PTA) plant in Zhejiang province late this week because of poor margins, a company source said on Monday.
The shutdown will last for 15-20 days from 9-10 November, the source said.
The plant has been running at 50% of capacity since its start-up in May because of unfavourable market conditions.
The company’s 600,000 tonne/year No 2 PTA unit at the same site in Yuandong is currently undergoing maintenance and is expected to be down for 20 days from 20-21 October, the source said.
Its two other PTA plants at the site – a 600,000 tonne/year No 3 unit and a 600,000 tonne/year No 1 PTA unit – are running at full capacity.
Most Chinese PTA producers have been incurring losses in October, taking into account the contract prices of feedstock paraxylene (PX) at yuan (CNY) 11,600/tonne ($1,859/tonne), and of PTA values at CNY8,650/tonne (DEL) delivered, according to ICIS.
One tonne of PTA requires 660-670kg of PX. With PX cost at CNY7,656-7,772/tonne, PTA producers are not able to cover variable costs, including freight, at CNY1,300/tonne.
($1 = CNY6.24)
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