08 February 2013 08:15 [Source: ICIS news]
SINGAPORE (ICIS)--India's IG Petrochemicals plans to restart its 65,000 tonne/year phthalic anhydride (PA) line at Taloja, Maharashtra state, on 10 February, as it expects PA prices to catch up with those of feedstock orthoxylene (OX) in the coming weeks, a company source said on Friday.
IG plans to run the PA line at 50% capacity after its restart, the source added.
The line has been shut since 21 January because the producer did not find it economical to operate with feedstock OX prices persistently higher than PA spot prices, according to the source.
The producer conducted maintenance on the line during the shutdown period, the source said, adding that the maintenance lasted 10 days.
Meanwhile, lower-priced PA should no longer be available in the market because other producers should also be experiencing cost pressure from high OX prices, said the source.
PA spot prices were assessed as stable at $1,520-1,560/tonne (€1,140-1,170/tonne) CFR (cost & freight) southeast (SE) Asia for the week ended 1 February, ICIS data showed.
Selling ideas remained firm during the week ended 8 February and some market participants said some buying ideas have increased by $10-20/tonne to $1,520-1,530/tonne CFR SE Asia.
Feedstock OX prices were assessed by ICIS as $10-15/tonne higher week on week at $1,590-1,615/tonne CFR NE Asia for the week ended 1 February.
The producer is running its separate 55,000 tonne/year capacity PA line at the same site at full capacity and will continue to focus more on the Indian domestic market, where it can fetch better prices, the source said.
($1 = €0.75)
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