17 January 2013 09:17 [Source: ICIS news]
SINGAPORE (ICIS)--Sam Nam Petrochemical will keep its 350,000 tonne/year No 1 qualified terephthalic acid (QTA) plant in Yeosu shut in January because of poor margins, a company source said on Thursday.
The unit was taken off line on 12 November last year, with the shutdown initially expected to last a month, the source said.
“We will not restart the unit until margins improve,” the source said.
On 17 January, spot purified terephthalic acid (PTA) cargoes were discussed at $1,175-1,185/tonne (€881-889/tonne) CFR (cost & freight) China Main Port (CMP), while prices of feedtock paraxylene (PX) were at around $1,660/tonne CFR CMP, according to ICIS.
The spread between PTA and its production costs was around $68/tonne – too little to cover the variable cost of around $130-150/tonne for most of Asian PTA producers.
QTA and its production cost are $10/tonne lower than PTA.
($1 = €0.75)
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