SINGAPORE (ICIS)--Taiwan’s Formosa Plastics Corp (FPC) shut its n-butanol (NBA) plant in Mailiao on 4 July on the back of production issues, a company source said on Friday.
The plant has a nameplate capacity of 250,000 tonnes/year, the source said, adding that the operating rate of the plant in the past two months was at 85-90%.
The unexpected shutdown resulted from a technical problem at the facility and will last for at least one week, the source said. The exact problem, however, could not be confirmed.
The company had already been limiting its spot export quantities since late May/early June, the source said, adding that FPC is likely to have limited spot supply in the next two months.
The company will also stock up more NBA for captive usage given their upcoming butyl acrylate (butyl-A) plant expansion at Ningbo, China, in September, the source said.
Market participants say it is likely to result in low supply in the northeast Asia region, but it is unclear whether this will have a large impact on prices, given the weak demand for downstream sectors such as butyl acetate (butac) and butyl-A.