China’s BASF-YPC runs EVA/LDPE swing plant at 80% after outage

26 February 2013 07:49  [Source: ICIS news]

SINGAPORE (ICIS)--China’s BASF-YPC is currently operating its 200,000 tonne/year ethylene vinyl acetate (EVA)/low density polyethylene (LDPE) swing plant in Nanjing, Jiangsu province, at 80% capacity after an outage because of unspecified technical issues, a company official said on Tuesday.

 “The plant was shut on 19 and 20 February, resulting in an output loss of around 800 tonnes of mainly 18% VA (vinyl acetate) content EVA,” he said, adding that operating rates have gradually recovered to around 80% of capacity by 26 February.

As a result of limited supply, the company raised its prices for the 18% VA EVA twice, first by yuan (CNY) 300/tonne ($48/tonne) to CNY12,600/tonne EXW (ex-works) on 20 February followed by a further CNY100/tonne hike on 25 February to CNY12,700/tonne EXW.  

EVA prices in the China market are expected to remain propped up in the near term by limited supply owing to unplanned and planned plant shutdowns, according to market players.

Supply has been limited after major regional producers implemented production cuts since October 2012 on the back of squeezed margins.

Looking ahead, China-based buyers in the downstream footwear/shoe sole sector said further price hikes may not be sustainable given that the overall economic outlook is unclear.

Major EVA producers in Asia include Taiwan’s Formosa Plastics Corp (FPC); USI Far East; South Korea’s Hanwha Chemical, Samsung Total; Lotte Chemical Corp; Japan’s Sumitomo Chemical, DuPont-Mitsui Polychemicals, Tosoh Corp; China’s Beijing Organic and DuPont Packaging & Industrial Polymers; Singapore’s The Polyolefin Co (TPC) and Thailand’s TPI Polene.

($1 = CNY6.24)

By: Helen Lee
+65 6780 4359

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