21 February 2013 07:49 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Dragon Aromatics plans to begin trial runs at its new Fujian-based paraxylene (PX)/orthoxylene (OX) unit in April, a company source said on Thursday.
The new PX facility has a nameplate capacity of 1.6m tonnes/year of PX and 240,000 tonnes/year of orthoxylene (OX).
“The company will initially begin trial runs at its 800,000 tonne/year new PX line in April, and if everything goes well, the company will start up the other 800,000 tonne/year PX line,” the source said.
According to several market players, Dragon Aromatics will only be able to start commercial operations after two months, if trial runs in April run smoothly.
“The news of the start-up will result in a bearish market sentiment,” a northeast Asia-based player said.
Prices of PX will be weighed down by excess supply when commercial operations start, amid prevailing weak downstream demand in the downstream purified terephthalic acid (PTA) sector, he added.
Additional reporting by Ong Sheau Ling
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