29 March 2013 02:56 [Source: ICIS news]
MELBOURNE (ICIS)--China’s Jiangsu Lianhai Biological Technology plans to cap its ethyl acetate (etac) plant’s operating rate at 60% capacity in the near term because of weak downstream demand, a source close to the company said on Friday.
The producer has been running its 100,000 tonne/year etac plant at Nantong in Jiangsu province at 50-60% capacity since mid-February, the source added.
Meanwhile, Jiangsu Lianhai's plan to boost its etac plant’s capacity by 150% to 250,000 tonnes/year is under way. Construction is still expected to be completed in the second quarter of 2013, the source said.
However, the producer may not start up the new capacity upon mechanical completion, in view of the persistently weak domestic and export demand for the solvent, the source added.
Domestic etac prices in eastern China were down for the second week, falling by yuan (CNY) 50/tonne ($8.04/tonne) to settle at CNY5,850-6,000/tonne EXW, according to Chemease, an ICIS Service in China.
Additional reporting by Elisa Fu
($1 = CNY6.22)
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