UpdateTaekwang confirms ACN shutdown in Oct

12 September 2008 07:04  [Source: ICIS news]

(Recasts lead, updates throughout)

SINGAPORE (ICIS news)--South Korean acrylonitrile (ACN) producer Taekwang Industrial will shut down its 250,000 tonnes/year plant in Ulsan for a 28-day turnaround from 6 October, a company official confirmed on Friday.

Earlier, the producer had mulled postponing the turnaround until early 2009 but had decided against it just last week due to weak demand.

The ACN market had been hit by persistently weak demand as the derivative acrylic fibre (AF) and acrylonitrile-butadiene-styrene (ABS) plants had been operating at reduced rates amid a slowing global economy.

Taekwang was among several ACN producers including Asahi Kasei, Ineos Nitriles, China Petrochemical Development Corp (CPDC) and Tongsuh Petrochemical which have either shut for maintenance or were operating at reduced rates in light of the poor market.

Spot ACN prices were currently at $2,000-2,050/tonne CFR (cost and freight) Asia, down more than $100/tonne in the past month, according to global chemicals  market intelligence service ICIS pricing.

Propylene production at Taekwang’s upstream 250,000 tonnes/year propane dehydrogenation (PDH) unit will continue running, which will release an excess of 15,000-20,000 tonnes additional propylene spot cargoes into the market, traders said.

This has added to downward pressure on propylene prices, which have fallen considerably in the past few days.

To discuss issues facing the chemical industry go to ICIS connect

ICIS Copyright © Reed Business Information 2009

Author: Helen Yan
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.