12 November 2013 07:45 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Hengli Petrochemical restarted its 2.2m tonne/year No 2 purified terephthalic acid (PTA) unit at Dalian in Liaoning province on 11 November after the completion of maintenance, a company source said on Tuesday.
Its operating rate will be ramped up gradually to full capacity, the source added.
The unit was shut down on 1 November for regular maintenance ahead of winter, because of weak demand and squeezed margins.
Hengli Petrochemical is operating its other 2.2m to nne/year PTA unit at the same site at full capacity, the source said.
The profit level for China’s PTA producers is considered to be thin or even negative in the past two months, which has led to low plant operating rates being maintained in the industry, market sources said.
Domestic PTA prices were at yuan (CNY) 7,340-7,380/tonne ($1,203-1,210/tonne) EXW (ex-works) on 12 November, a decrease of CNY230/tonne compared with one month ago, according to Chemease, an ICIS service in China.
The PTA market is expected to remain vulnerable through the year end and will not be significantly affected by one unit’s shutdown or higher production, market sources said.
($1 = CNY6.10)
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