10 October 2013 18:22 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Shanghai Wujing’s acetic acid plant is running at a reduced load of 60-70% capacity because of unspecified mechanical issues earlier in the week, a company official said on Thursday.
The plant, located at Wujing, Shanghai, has a total acetic acid production capacity of 700,000 tonnes/year and was previously operating at 70-80% capacity.
The duration of the operating rate reduction was unclear, according to the official, adding that the impact on the domestic acetic acid market was likely to be limited.
The estimated production loss of 3,000 to 4,000 tonnes resulting from the output cut may remain below 10,000 tonnes if the output reduction persists for 10 days, the official added.
“We see no major impact on the broader market,” he said.
Domestic acetic acid buyers are adopting a wait-and-see stance on expectations of a price correction in tandem with the decline in methanol feedstock prices after the 1 to 7 October National Day holidays.
Chinese domestic acetic acid prices were range bound at yuan (CNY) 3,050-3,450/tonne ($498-563/tonne) ex-tank in Jiangsu and Zhejiang provinces during the week to 10 October, largely stable from levels prior to the holidays.
Major acetic acid producers in Asia include BP, Celanese, China’s Jiangsu Sopo, Shanghai Wujing, Yankuang Cathay Coal Chemicals and Taiwan’s Chang Chun Petrochemical.
($1 = CNY6.12)
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