S Korea’s Tongsuh to cut ACN plant run rate to 80% from mid-Nov

13 November 2012 03:20  [Source: ICIS news]

Acrylic fibres - a major downstream market for ACN - are used in clothing and home furnishings, such as carpets, upholstery and cushions.SINGAPORE (ICIS)--Tongsuh Petrochemical will cut production at its 320,000 tonne/year acrylonitrile (ACN) plant at Ulsan in South Korea from mid-November because of weak market conditions, a company source said on Tuesday.

“We are now running at 100% of capacity since we restarted in early November, but will reduce the operating rate to 80% of capacity from mid-November because of the poor market conditions,” the source said.

The plant resumed production in early November following a month-long turnaround. It shut in early October for maintenance, the source said.

ACN prices have been declining since mid-September because of oversupply and weak demand.

In the week ended 9 November, ACN prices were at $1,650-1,750/tonne (€1,304-1,383/tonne) CFR (cost and freight) northeast (NE) Asia, down by more than $200/tonne from mid-September, according to ICIS data.

Tongsuh Petrochemical is a fully-owned subsidiary of Japan’s Asahi Kasei, major ACN producer.

($1 = €0.79)

By: Helen Yan
+65 6780 4359

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