Sinopec-owned producers cut acrylic fibre output

29 April 2008 10:30  [Source: ICIS news]

SHANGHAI (ICIS news)--Two major east China acrylic fibre (AF) producers owned by Sinopec plan to reduce operating rates due to the high price of feedstock acrylonitrile (ACN) and soft downstream demand, traders said on Tuesday.

 

Zhejiang Jinyong, a subsidiary of Sinopec, plans to cut its operating rate by 50% from 1 May, said a company source.

 

Meanwhile, Shanghai Jinyang, another subsidiary of Sinopec, will shut down its two AF plants with its 94,000 tonne/year unit to close for about one week from 5 May and its 45,000 tonne/year AF unit from 5-15 May.

 

High feedstock prices and poor demand in the synthetic fibre market had forced AF producers to either shut down or cut operating rates in order to minimise losses, said an industry source.

 

“We have to stay on the market sidelines, waiting for an acceptable cost level,” said one AF trader.

 

Meanwhile, Daqing Refinery, an ACN producer, planned to shut down its 80,000 tonne/year plant for one-week maintenance from 6 May, said a company source.

 

Another China ACN producer, Jilin Petrochemical planned a turnaround at its 212,000 tonne/year unit from 14 May to 20 June.

ICIS Copyright © Reed Business Information 2009

Author: Dolly Wu
+65 6780 4359

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