19 February 2013 08:29 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Yunnan Yuntianhua is running its 800,000 tonne/year urea plant in Yunnan province at around 80% capacity after restarting during the 9-15 February Lunar New Year holiday, a company source said on Tuesday.
The company achieved on-spec production on 13 February, the source said.
The plant was taken off line on 5 December 2012, because of a shortage of feedstock natural gas in China’s southwest region, the source said.
The restart may have an impact on regional supply since Yunnan Yuntianhua is the largest urea producer in the region. However, it is unlikely to impact prices in March and April, the source added.
The March-April period is the traditional peak demand season for fertilizers in China and the additional supply will likely be balanced out by increased demand.
Spot urea prices were at yuan (CNY) 2,200-2,300/tonne ($352-368/tonne) EXW (ex-works) in southwest China on 19 February, largely unchanged compared with those before the holiday, according to data from Chemease, an ICIS service in China.
Yunnan Yuntianhua, which is headquartered at Shuifu county in Yunnan province, is a key fertilizers and chemical manufacturer in southwestern China.
($1 = CNY6.25)
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