China’s Qinhuangdao ups AF plant op rate to 80%

28 April 2008 08:08  [Source: ICIS news]

SHANGHAI (ICIS news)--China-based Qinhuangdao Acrylic Fibre has ramped up operating rates at its 50,000 tonne/year acrylic fibre (AF) plant to around 80% from 50-60% despite rising feedstock acrylonitrile (ACN) costs, a company source said on Monday.

"We increased the operating rate recently in response to the demand from some customers. However, we have cancelled some orders of small customers amid rising feedstock acrylonitrile prices," the source said.

Qinhuangdao, located in north China's Hebei province, operates ten AF lines with a combined capacity of 50,000 tonnes/year.

Many AF plants have been operating at reduced rates due to high feedstock prices although May was the peak season for the product, said the source, adding that the company was also considering shutting down two lines in May if ACN prices continued to soar.

Domestic ACN had increased by more than yuan (CNY)1,000/tonne ($143/tonne) to CNY 16,500-16,800/tonne ex-tank in east China in the past month.

In the international market, ACN had surged to $2,000/tonne CFR (cost and freight) Asia for May shipments, about $50-60/tonne higher than the previous month.

AF prices were stable at CNY 17,500/tonne ($2,496/tonne) in east China, traders said.

($1=CNY7.01)

Helen Yan contributed to this article

For more on ACN visit ICIS chemical intelligence

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Author: Judith Wang
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