28 March 2013 10:51 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Ningbo ZRCC Lyondell Chemical (NZLC) will shut its propylene oxide (PO)/styrene monomer (SM) plant on 31 March for a week-long maintenance to resolve a technical problem, a source close to the company said on Thursday.
The facility, located in Ningbo, Zhejiang province, has a nameplate capacity of 285,000 tonnes/year of PO and 620,000 tonnes/year of SM.
NZLC is the largest PO producer in eastern China and supplies about 750-800 tonnes of PO daily.
As overall PO market supply will dip when the NZLC plant shuts, domestic PO suppliers in eastern China have hiked prices this week in anticipation of tightened spot availability.
Spot PO prices were at yuan (CNY) 11,300-11,500/tonne ($1,820-1,852/tonne) DEL (delivered) eastern China on 28 March, according to market sources, edging up by CNY200-300/tonne from the previous week.
The magnitude of the increases has not been bigger because of industry-wide lacklustre demand.
NZLC is a joint venture between LyondellBasell and Zhenhai Refining & Chemical Co (ZRCC), a subsidiary of China’s petrochemical giant Sinopec.
($1 = CNY6.21)
Additional reporting by Vikki Shen
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