04 December 2012 08:38 [Source: ICIS news]
MELBOURNE (ICIS)--Japan’s Mitsui Chemicals plans to continue running its Osaka phenol/acetone plant at a reduced rate of 70% in December because of an ongoing margin squeeze, a company official said on Tuesday.
Output at the Osaka plant, which can produce 200,000 tonnes/year of phenol and 120,000
tonnes/year of acetone, will be capped at 70% of capacity for the entire month, unchanged from November, the official said.
The company first cut its Osaka phenol/acetone output in November in response to unfavourable production economics, underpinned by persistently high feedstock benzene costs and slow phenol/acetone demand from the key China market.
The market situation has not improved this month, the Mitsui Chemicals official said.
In 2011, China purchased about 760,000 tonnes of phenol, mainly from Europe, Taiwan, South Korea and the US.
The country’s approximately 730,000 tonnes of acetone imports in 2011 were supplied predominantly by Taiwan, the US and Europe.
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