16 January 2013 04:02 [Source: ICIS news]
SINGAPORE (ICIS)--Some Chinese and Taiwanese epoxy resin producers are planning to cut back production during the upcoming Lunar New Year long holiday period anticipating weak demand, market sources said on Wednesday.
The Lunar New Year holiday falling on 10-15 February this year typically results in many business activities coming to a halt or slowing down in China and Taiwan.
Epoxy resin producers are looking at cutting back on plant operations because shipping activities will also be suspended during the holiday, market players added.
An estimated at least 435,000 tonnes/year of capacity is likely to be idled during the holiday season amounting to a production loss of around 8,400 tonnes of epoxy resin, market sources said.
A few Chinese producers have decided to even suspend operations ahead of the holidays, in end-January, because domestic buying activity is limited.
Many buyers have sufficient inventories from previous purchases to meet their sales volume over the holiday period, market sources added.
Additional reporting by Lily Wei
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