06 December 2012 06:40 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Yisheng Petrochemical has lowered operating rates at its purified terephthalic acid (PTA) units to 60% in December because of poor margins, a company source said on Thursday.
The company has been running its 2.2m tonne/year Dalian plant in Liaoning province at 50% capacity since the beginning of December, the source said.
Yisheng’s 650,000 tonne/year No 2 plant at Ningbo in Zhejiang province remained shut from 10 October without specified restart schedule, he added.
The overall operating rate of Yisheng’s existing 5.5m tonne/year capacity fell to around 60% from 70% in November, the source said.
“Trim down output can help us reduce margins losses,” the source said.
Taking into account the November Chinese contract prices for both PTA and feedstock paraxylene (PX), the spread between PTA and raw material cost has narrowed by yuan (CNY) 300/tonne ($48/tonne) from October to CNY650/tonne, which is not able to cover conversion cost of around CNY800-1,200/tonne for most of the Chinese PTA producers, according to ICIS.
The November Chinese PTA contract prices were concluded at yuan (CNY) 8,450/tonne DEL (delivered), while the November Chinese contract price of feedstock paraxylene (PX) were settled at CNY11,750/tonne DEL according to ICIS.
($1 = CNY6.23)
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