18 December 2012 08:51 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Plastics Corp (FPC) has reduced the operating rates at its 100,000 tonne/year epichlorohydrin (ECH) unit in Mailiao from 80% to 70% of its nameplate capacity, a company source said on Tuesday.
“Demand [for ECH] is not good, so we have decided to reduce our operating rates,” the source said.
Plans for any subsequent increase in the ECH unit’s operating rates have not been confirmed.
FPC was operating its ECH unit at around 80% capacity for the past few months, but the drastic decline in ECH spot prices has made it unviable to maintain its production rates.
ECH spot prices fell from $1,850-1,900/tonne CFR (cost and freight) China Main Port (CMP) on 15 May to $1,490-1,540/tonne CFR CMP on 11 December, according to ICIS data.
This marked a 19.2% decrease over the period and has resulted in squeezed margins for regional producers.
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