07 February 2013 06:40 [Source: ICIS news]
SINGAPORE (ICIS)--China’s SP Chemicals shut its vinyls units at Jiangsu on 4 February for safety checks because of leakage at a soy oil storage tank at a berth nearby, a company source said late on Wednesday.
The units include a caustic soda unit and a vinyl chloride monomer (VCM) unit, with nameplate capacities of 750,000 dmt/year and 500,000 tonnes/year respectively, as well as an ethylene dichloride (EDC) unit which nameplate capacity was not immediately available.
“All three units are affected,” said the source, who added that investigations of the cause of leakage were still ongoing.
The source said that their company’s EDC volumes were mostly retained for captive use for their downstream VCM production purposes.
According to the source, the affected units are expected to resume operations only after the Lunar New Year holiday. Some of the February-loading cargoes have also been delayed for shipment.
The impact of the leakage on SP Chemicals’ plants is expected to be temporary, although market participants believe that the delays in shipment and the shutdown would weigh further on the existing short supply situation of EDC and VCM within the Asian region.
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