23 January 2013 04:12 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Changzhou Qinghong Chemical is planning to shut its 50,000 tonne/year phthalic anhydride (PA) unit at Changzhou in Jiangsu province on 30 January in view of squeezed margins, a company source said on Wednesday.
High feedstock prices amid sluggish demand in the downstream sectors such as dioctyl phthalate (DOP) and unsaturated polyester resin (UPR) sectors have resulted in squeezed margins, the company source said.
The company is likely to restart the unit after the Lunar New Year holiday on 9-15 February, the source added.
Most PA producers in China have started to shut or lower operating rates at their plants because of high feedstock costs, the source said.
The shutdown may lead to a decline in PA supply in east China. However, it will have little impact on the spot market because of weak downstream demand, a market player said.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections