SINGAPORE (ICIS)--South Korea’s Hyundai Cosmo Petrochemical (HCP) plans to shut its 800,000 tonne/year No 2 paraxylene (PX) unit located at Daesan in early June because of poor market conditions, a company source said on Monday.
The company is currently operating the unit at around 75% of capacity, the source said.
HCP plans to shut its No 2 PX unit because of squeezed margins, while its 380,000 tonne/year No 1 PX unit will continue in operation.
The company owns a toluene disproportionation (TDP) unit, which can produce 120,000 tonnes/year of benzene, and the unit will continue to operate despite the shutdown of the PX unit, according to the source.
As a result, the company will have to sell some isomer-grade xylene cargoes to the spot market, the source added.
Additional reporting by Ong Sheau Ling