26 August 2013 09:30 [Source: ICIS news]
MELBOURNE (ICIS)--China’s Jiangsu Lianhai Biological Technology is capping its ethyl acetate (etac) output at 70% capacity after restarting its two lines, a source close to the company said on Monday.
The company’s two etac lines at Nantong in Jiangsu province, with a combined etac capacity of 300,000 tonnes/year, was restarted on 25 August following the completion of minor maintenance, the source said.
The lines were shut on 19 August.
The producer’s decision to run the plant at the reduced rate was prompted by the persistently slow domestic and export demand for etac, the source added.
Etac prices have lagged the gains in feedstock acetic acid prices because of an ongoing supply overhang, according to data compiled by ICIS.
Feedstock acetic acid prices have increased by 2.4% since mid-July to settle at $432.50/tonne (€324.40/tonne) FOB (free on board) China on 23 August, while etac prices have been flat at $860/tonne FOB China over the same timeframe, ICIS data showed.
China, with a nameplate capacity of about 3m tonnes/year, is the world’s largest producer of etac.
Other major etac makers in China include Jiangsu Sopo, Wuxi Baichuan Chemical Industrial, Shandong Jinyimeng, Jiangmen Handsome Chemical Development and Shanghai Huayi Group.
($1 = €0.75)
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