China's Yisheng to lower PTA April ops to 34% on negative margins

26 March 2013 05:54  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Yisheng Petrochemical, the largest PTA producer in the world, has set its April shutdown schedule to further reduce the operating rates of its purified terephthalic acid (PTA) capacity to 34% because of negative margins, a company source said on Tuesday.

“Margins and demand continue poor. We have no choice but to reduce PTA production,” the source said.

China’s domestic PTA and PX March contract prices were settled on 25 March at yuan (CNY) 8,400/tonne DEL and CNY11,550/tonne DEL, down by CNY725/tonne and CNY1,250/tonne from February.

The spread between raw material cost and PTA March prices has seen an improvement of yuan (CNY) 100/tonne to CNY777/tonne in March.

“But this still cannot cover our minimum conversion cost of around CNY800-1,000/tonne,” the source said.

The company has previously restarted its 2m tonne/year Hainan PTA unit and 3.3m tonne/year Dalian No 2 PTA plant in early March , but is operating the two units at around 50% capacity. This was after shutting down its 2.5m tonne/year Dalian No 1 PTA unit on 6-7 March.

However, the overall operating rates of Yisheng’s PTA units were maintained at around 45% of capacity in March.

Yisheng operates six PTA units at three different locations, with a combined capacity of 11.1m tonnes/year.

PTA capacities, thousand tonnes/year

Location

Shutdown schedule in March

Shutdown plans in April

650, No 1

Ningbo, Zhejiang

Shut since 17 Feb

Keep shut

650, No 2

Ningbo, Zhejiang

Operating at 100%

To be shut on 20 April

2,000, No 3

Ningbo, Zhejiang

Operating at 100%

To be shut on 20 April

2,000

Hainan

Restarted on 10-11 March, operating at 50%

To be shut on 1 April

2,500, No 1

Dalian, Liaoning

Shut on 6-7 March

Keep shut

3,300, No 2

Dalian, Liaoning

Restarted on 6-7 March, operating at 50%

To hike operating rates to 88%


By: Becky Zhang
+65 6780 4359



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly