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.
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)
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