21 February 2013 07:28 [Source: ICIS news]
SINGAPORE (ICIS)--China’s SP Chemicals has resumed operations at its vinyls units at Jiangsu following a shutdown on 4 February for safety checks due to leakage at a soy oil storage tank at a berth nearby, a Singapore-based company source said on Thursday.
According to the source, operations at the vinyls units were restarted early this week when the Chinese market players returned from the Lunar New Year holiday. The exact date was not immediately available.
The units include a caustic soda unit and a vinyl chloride monomer (VCM) unit, with nameplate capacities of 750,000 dry metric tonne (dmt)/year and 500,000 tonnes/year respectively, as well as an ethylene dichloride (EDC) unit for which nameplate capacity was not immediately available.
When asked about the operating rates of the units, the source said, “[I am] not sure about operating rates, they should be at high levels.”
The source also added that some of their February-loading cargoes had been delayed for shipment, while some orders were cancelled following the incident.
The company has not begun offering any VCM to the export market yet on the back of limited supply as they had only just restarted operations. According to market participants, the lack of VCM spot cargoes for sale would weigh further on the existing short supply situation within Asia and exert further upward pressure on VCM prices.
Market participants also added that the impact of this incident on the caustic soda market is limited as supply is ample, while EDC prices are not expected to be affected significantly as SP Chemicals retain the bulk of its EDC for captive usage in downstream VCM production.
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