10 May 2013 12:08 [Source: ICIS news]
SINGAPORE (ICIS)--SCG-DOW will reduce production at its propylene oxide (PO) plant in June to 60-70% of capacity from its current level of 90%, market sources said on Friday.
As a result of the cutback, the company is likely to have fewer PO cargoes for sale from next month onwards, although further details are not immediately available. Market players speculate that the production curb will probably be lifted when market conditions are more favourable.
However, the news is likely to have provided some support to the PO import market in China this week, where prices have jumped by $50/tonne to levels above $1,550/tonne CFR China, according to ICIS.
The 390,000 tonne/year plant is located at the Asia Industrial Estate site near Map Ta Phut, Thailand. The company also has a 150,000 tonne/year monopropylene glycol (MPG) facility at the site.
SCG-Dow is a joint venture between Dow Chemical and Siam Cement Group (SCG).
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