S Korea's Hanwha Chemical to cut China PVC plant run rate to 50%

21 February 2014 05:07 Source:ICIS News

SINGAPORE (ICIS)--S Korea's Hanwha Chemical plans to cut production at its 300,000 tonne/year polyvinyl chloride (PVC) plant in China’s Jiangsu province by the end of the month, citing high feedstock costs and weak demand, a company source said on Friday.

The plant in east China is currently running at full tilt, the source said.

Production margins are being squeezed by rising costs of feedstock ethylene, while demand from downstream sectors remained sluggish, the source said.

Hanwha Chemical is offering PVC from its China plant at (yuan) CNY 7,200/tonne ($1,184/tonne) EXW (ex-works), the company source said.

($1 = CNY6.08)

By Stephanie Zhang