08 October 2013 02:54 [Source: ICIS news]
MELBOURNE (ICIS)--China’s Rizhao Jiahong Biological Technology plans to run its 100,000 tonne/year ethyl acetate (etac) plant at Rizhao in Shandong province at 40% capacity throughout October, a company source said on Tuesday.
The etac producer reduced its plant operating rate on 1 October because of unfavourable economics, the source said.
Prior to the output cut, Rizhao Jiahong was running its plant at 60% capacity in late September, the source added.
The economics of manufacturing etac have deteriorated because prices have failed to keep pace with the gains in feedstock acetic acid costs, the source said, adding that the company will, for the time being, focus on selling etac in the domestic market because the yuan-denominated etac prices in China are higher than those in the dollar-denominated export market.
China, with an etac nameplate capacity of about 3m tonnes/year, is the world’s largest producer and exporter of the solvent.
Major etac makers in China include Jiangsu Sopo, Wuxi Baichuan Chemical Industrial, Shandong Jinyimeng, Jiangmen Handsome Chemical Development, Jiangsu Lianhai Biological Technology and Shanghai Huayi Group.
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