29 August 2013 10:13 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s Hyundai Cosmo (HC) Petrochemical has decided to further cut operating rates at its 800,000 tonne/year No 2 paraxylene (PX) unit in Daesan from September because of weak economics, a company source said on Thursday.
The company recently cut the operating rates at its No 2 PX unit because of squeezed margins between feedstock isomer-grade xylene and PX.
“We have decided to further cut operating rates from September to as low as possible,” the source said.
HC Petrochemical will conduct a minimum load test from 2-4 September, and will operate the unit at a minimum level starting from 5 September, the source added.
The minimum operating rate is estimated at around 70% run rates, according to the source.
As a result, the company has cancelled previous orders for September arrival for 15,000 tonnes of mixed xylenes, the source said.
“Some contractual PX volumes have been deferred, and if low operating rates continue, we may be forced to purchase spot PX to fulfil contractual needs,” the source added.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections