China's Liaoning Huaxing Group fatty alcohol plant still down

17 May 2013 11:33  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Liaoning Huaxing Group Chemical Corp did not resume its fatty alcohol production as planned this week following an unscheduled shutdown at its facilities at the end of April, market sources said on Friday.

The company stopped its fatty alcohol production because of “environmental” issues, sources said. The exact nature of the problem is unclear.

“They were hoping to restart the plant on 15 or 16 May but it looked as if the (environmental) issues have not been resolved yet," a source said.

Liaoning Huaxing has in total five facilities with a combined annual capacity of 220,000 tonnes/year, but sources said the company was operating at less than half its capacity prior to the shutdown.

The production halt led to a shortage in blended mid-cut C12-14 fatty alcohol supply in the Chinese domestic market, sources said.

A Chinese producer is offering its C12-14 fatty alcohol supply at yuan (CNY) 12,500/tonne ($2,032/tonne) EXW (ex-works) on 17 May, up from CNY11,800/tonne EXW earlier this week.

($1 = CNY6.15)

By: Yeow Pei Lin

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