S Korea's Sam Nam to keep No 1 QTA unit shut on poor margins

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)

By: Becky Zhang
+65 6780 4359

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