China’s Rizhao Jiahong to further cut etac output in November

30 October 2013 03:20  [Source: ICIS news]

MELBOURNE (ICIS)--China’s Rizhao Jiahong Biological Technology plans to further reduce the operating rate at its 100,000 tonne/year ethyl acetate (etac) plant in Shandong province in November because of unfavourable economics, a company source said on Wednesday.

The producer plans to run the plant in Rizhao at about 30% capacity throughout November, from roughly 40% capacity in October, the source said.

The recent gains in feedstock acetic acid and ethanol prices have continued to compress etac producers’ margins, the source added.

Even though there has been a small decline in acetic acid prices in China, co-feedstock ethanol prices have increased on the back of limited product availability, the source said.

Ethanol prices in east China settled yuan (CNY) 150-200/tonne ($25-33/tonne) higher at CNY5,950-6,250/tonne EXW for the week ended 25 October, according to data collated by Chemease, an ICIS service in China.

($1 = CNY6.09)

Additional reporting by Allison Shi

By: Trisha Huang

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