29 August 2013 07:11 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Yisheng Petrochemical reduced the operating rates at its purified terephthalic acid (PTA) units at Ningbo and Dalian early in the week because of negative margins for August, a company source said on Thursday.
The company’s 650,000 tonne/year No 2 PTA unit at Ningbo in Zhejiang province was shut on 27 August and will remain off line for an indefinite period of time until margins improve, the source said.
Overall operating rates at its two PTA units at Dalian in Liaoning province were lowered to 65% from 90% capacity since early this week, the source added. The PTA units have a combined capacity of 5.8m tonnes/year.
The price spread between PTA and its feedstock paraxylene (PX) narrowed significantly to $63/tonne (€47/tonne) on 28 August from $117/tonne a month ago, according to ICIS data.
The company also plans to shut its 2m tonne/year PTA unit in Hainan province in September, but has yet to schedule a date, the source said.
The Hainan PTA unit is currently running at 50% capacity after it was restarted on 10-11 August, the source added.
Yisheng is the largest PTA producer in the world, with a total of 11.1m tonnes/year PTA operating capacity in China.
($1 = €0.75)
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