SINGAPORE (ICIS)--China’s Jinyimeng Group has again reduced the operating rates at its ethyl acetate (etac) plants in Shandong and Jiangsu provinces in a bid to counter the worsening margin squeeze, a company source said on Monday.
The producer late last week lowered the operating rates at its two etac plants, which have a combined capacity of 350,000 tonnes/year, to about 50% of capacity from 60-70% previously, the source said.
The company may take one or both of its plants off line for maintenance if the margin squeeze continues to worsen, the company source added.
The yuan-denominated etac prices in east China have increased by 8.5% since late March to settle at yuan (CNY) 6,375/tonne ($1,027/tonne) EXW for the week ended 13 June, according to data compiled by ICIS China.
However, etac’s price gains have lagged behind the 35% surge in raw material acetic acid prices over the same period, according to data compiled by ICIS.
Acetic acid prices settled at CNY4,050/tonne ex-tank in east China for the week ended 13 June, ICIS data showed.
($1 = CNY6.21)
Additional reporting by Trisha Huang