Teck Guan China to shut fatty alcohol plant in July

27 May 2013 10:23  [Source: ICIS news]

SINGAPORE (ICIS)--Teck Guan China will shut its 100,000 tonne/year fatty alcohol plant in Jiangsu province in mid-July for at least three weeks to facilitate a catalyst change, a company source said on Monday.

The shutdown is expected to worsen the current shortage in mid-cut C12-14 fatty alcohol supplies in the Chinese domestic market, Chinese traders and buyers said.

Supplies have fallen short of demand after Liaoning Huaxing Group Chemical Corp halted its fatty alcohol production unexpectedly at the end of April, because of “environmental” issues, sources said.

“End-users have been keeping low inventories due to weak downstream demand, so this sudden disruption in supply is hitting buyers hard,” a Chinese distributor said. 

It is unclear when Liaoning Huaxing will be able to resume operations. The company has in total five lines 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.

Chinese domestic fatty alcohol prices rose to yuan (CNY) 14,000/tonne ($2,284/tonne) EXW on Monday, up from CNY13,000/tonne EXW in the previous week, Chinese sources said.


Author: Pei Lin Yeow

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