23 January 2013 06:34 [Source: ICIS news]
SINGAPORE (ICIS)--India's IG Petrochemicals shut its 65,000 tonne/year phthalic anhydride (PA) line at Taloja, Maharashtra on 21 January because it is not economical to operate at the current low PA spot prices, a company source said on Wednesday.
The feedstock orthoxylene (OX) prices have been persistently higher than PA spot prices, hence making it not economical for PA production, the source said.
Feedstock OX prices were assessed at $1,590-1,640/tonne (€1,193-1,230/tonne) CFR (cost & freight) India and PA prices were assessed at $1,550-1,570/tonne CFR southeast (SE) Asia on 18 January, according to ICIS data.
The last spot deal concluded for PA by the producer was at $1,630/tonne CFR West Asia, or equivalent to $1,560-1,570/tonne FOB (free on board) India, on 20 January, the source said.
There is no fixed date when the line will resume operations, but the producer said it will continue to observe the PA market situation.
The PA line had also been scheduled for maintenance for at least 10 days during the shutdown period, the source added.
The producer is running its separate 55,000 tonne/year capacity PA line at the same site at full capacity. It will supply only to the Indian domestic market which can fetch a better price, while ceasing spot supply to other regions given the current market condition, the source said.
The Indian domestic PA prices are around Indian rupees (Rs) 95/kg ($1,768/tonne) DEL (delivered), the source said.
“There is a good one and a half months away from March. Hopefully, PA market will be better then,” the source said.
($1 = €0.75, $1 = Rs53.73)
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