23 January 2013 07:12 [Source: ICIS news]
SINGAPORE (ICIS)—South Korea’s KPX Chemical is running only one 50,000 tonne/year toluene di-isocyante (TDI) unit in Yeosu at full capacity, and there are no plans to restart the other units, a company source said on Tuesday.
The company has two other TDI of identical capacities that have been shut since last year because of oversupply in key consuming markets like China that have pushed down chemical prices and weakened operating margins, the source said.
With only one unit running, the company has chosen to focus mainly on supplying the domestic market. It only conducts export business with selective overseas customers who are willing to pay a premium.
Spot TDI prices in China and Hong Kong were assessed as flat at $2,650-2,700/tonne on a CFR (cost and freight) basis in mid-January, according to ICIS.
Although prices have increased slightly from December, they still need to gain around $200/tonne before reaching levels lucrative enough for the company to increase its production, the source said.
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