27 August 2013 11:25 [Source: ICIS news]
SINGAPORE (ICIS)--Japan’s Ube Industries shut its 100,000 tonne/year caprolactam (capro) plant in Sakai, Osaka prefecture, for unplanned maintenance on 26 August, a source close to the company said on Tuesday.
The company plans to restart the plant in early October, the source added.
Ube Industries is believed to have shut the Sakai plant for financial reasons, some market players said.
The output from the plant is mainly supplied to the polyamide producers in Taiwan.
Contractual capro volumes supplied to Taiwan were cut sharply in past two months because of the low downstream plant operating rates.
The August capro contract was settled at around $2,320/tonne (€1,740/tonne), while Asia’s benzene contract price was around $1,250/tonne, leaving no profit for capro production in August, according to market players.
Ube has three capro plants with a combined capacity of 330,000 tonnes/year in Asia. The other two plants are located in Thailand and in Yamaguchi prefecture, Japan.
The company has announced on its official website that it will permanently shut the Sakai plant in 2014 because of a large financial loss.
($1 = €0.75)
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