11 June 2013 04:11 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Dragon Aromatics is currently facing technical difficulties at its heat exchanger unit, which is part of its new paraxylene (PX) complex, a company source said on Tuesday.
“There is [a] problem at the heat exchanger, but [it] should not be a big issue,” the source said without elaborating on when it occurred and the expected duration of the issue.Dragon Aromatics continues to eye PX output from its new facility as scheduled, in end-June/early-July, the source added.
According to market participants, PX output from Dragon Aromatics’ new 800,000 tonne/year PX line is expected to be delayed by one to two months because of the technical fault at the company’s heat exchanger.
“If the output from the new unit is delayed, PX spot prices will likely trend upwards in the near term because of anticipated balanced-to-tight conditions,” a northeast Asia-based trader said.
On 10 June, PX spot prices increased by $3/tonne (€2/tonne) to $1,448-1,458/tonne CFR (cost & freight) Taiwan and/or China Main Port, compared to 7 June, according to ICIS data.
($1 = 0.75)
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