20 March 2013 06:30 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Zhenhai Taida Chemical is planning to shut its 60,000 tonne/year phthalic anhydride (PA) unit at Ningbo in Zhejiang province on 25 March because of squeezed margins, a company source said on Wednesday.
The company has yet to fix a timeline to restart the plant, according to the source.
The firm has been weighed by high feedstock costs and sluggish downstream demand from the dioctyl phthalate (DOP) and unsaturated polyester resin (UPR) sectors, the source said.
Most PA producers in China have started to shut or lower operating rates at their plants because of high feedstock costs and poor demand, according to the source.
The shutdown may lead to a decline in PA supply in east China but will have minimal impact on the spot market amid weak downstream demand, a market player said.
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