China’s Rizhao Jiahong cuts etac plant op rate to 70% capacity

12 December 2012 01:40  [Source: ICIS news]

MELBOURNE (ICIS)--China’s Rizhao Jiahong Biological Technology has cut the operating rate of its 100,000 tonne/year ethyl acetate (etac) plant at Rizhao in Shandong province to 70% capacity in response to poor market conditions, a company source said on Wednesday.

The producer cut its etac output to 70% capacity over the weekend of 8-9 December, from about 90% capacity previously, the company source said.

“We plan to keep our plant running at no higher than 70% in the near term,” the source added.

Etac prices in China have been on a steady decline since early October, while the costs of feedstock acetic acid and ethanol have stayed comparatively high, putting producers’ margins under pressure.

Domestic etac prices in eastern China have declined by 5.9% since the week ended 12 October to settle at yuan (CNY) 5,950-6,100/tonne ($952-976/tonne) EXW (ex-works) for the week ended 7 December, according to Chemease, an ICIS service in China.

In comparison, the prices of feedstock ethanol in Jiangsu have lost 2.2% over the same period to close at CNY6,200-6,500/tonne EXW for the same week, according to Chemease data.

($1 = CNY6.25)

By: Trisha Huang

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