17 September 2013 11:12 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s Hyundai Cosmo (HC) Petrochemical is currently operating its two paraxylene (PX) units in Daesan at a reduced capacity because of squeezed margins, a company source said on Tuesday.
Run rates at the two PX units – a 380,000 tonne/year No 1 unit and an 800,000 tonne/year No 2 unit – have been reduced to 70% since 1 September because of the weak price spread between feedstock isomer-grade xylene and PX.
On 16 September, isomer-grade xylene prices stood at $1,295-1,300/tonne (€9571-975/tonne) FOB (free on board) Korea, while PX prices stood at $1,475-1,480 FOB Korea, according to ICIS data.
The price difference is currently at $180/tonne, against the ideal spread range of $220-250/tonne, according to market participants.
In early August, HC Petrochemical's 380,000 tonne/year PX unit was running at full capacity, while the 800,000 tonne/year plant was operating at 80% of capacity.
($1 = €0.75)
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