22 January 2013 03:27 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Plastics Corp (FPC) plans to restart its 72,000 tonne/year ethylene vinyl acetate (EVA)/low density polyethylene (LDPE) swing plant in Mailiao in the week following a drawdown in stocks, a company official said on Tuesday.
The EVA/LDPE plant was taken off line on 8-9 January largely because margins were squeezed on the back of escalating feedstock ethylene prices, the official said.
“Our inventory has been lowered so we may restart the plant within this week, but buyers may realise that supply has tightened after the Lunar New Year holiday,” the official said.
The Taiwanese producer also has a 168,000/tonne tubular EVA plant at the Mailiao site and it is currently operating at normal rates, the official added.
Asia’s import prices of general-purpose grade EVA with 18% VA content gained $50-100/tonne (€37.50-75.00/tonne) in the first half of January to above $1,600/tonne CFR (cost and freight) China Main Port (CMP)/southeast Asia/south Asia, ICIS data showed.
The price hike has been attributed to firmer feedstock costs and limited supply.
Major EVA producers in Asia include Taiwan’s USI Far East; South Korea’s Hanwha Chemical, Samsung Total; Japan’s Sumitomo Chemical, DuPont-Mitsui Polychemicals, Tosoh Corp; China’s YPC-BASF (BYC), Beijing Organic and DuPont Packaging & Industrial Polymers; Singapore’s The Polyolefin Co (TPC) and Thailand’s TPI Polene.
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