MELBOURNE (ICIS)--China’s Rizhao Jiahong Biological Technology is keeping its ethyl acetate (etac) plant in Shandong province off line because its margins remain under pressure from high feedstock acetic acid prices, a company source said on Friday.
The producer on 10 May took its 100,000 tonne/year etac plant off line for a turnaround.
The company is extending the etac plant’s shutdown beyond the one-month timeline that it initially planned, because etac prices have failed to keep up with the gains in acetic acid prices, the source said.
The yuan-denominated etac prices in east China have increased by 6.8% since late March to settle at yuan (CNY) 6,275/tonne EXW for the week ended 20 June, according to data compiled by ICIS China.
In contrast, acetic acid prices in east China have surged by 35.8% over the same period to settle at CNY4,075/tonne ex-tank, ICIS data showed.
Additional reporting by Allison Shi
($1 = CNY6.22)