Asian Oxo Alcohols: SE Asia PA Chemical Industry up $10/mt on firm demand

Chemical Industry

 

– Aekyung to delay 210,000 mt/year PA plant shutdown

– Nan Ya to run 2-EH unit at 100% by early May

The phthalic anhydride Chemical Industry in Southeast Asia continued to trend higher this week as stronger replenishing demand and tighter spot supply pushed up trade levels. South Korea’s Aekyung Petrochemical plans to shut its 210,000 mt/year phthalic anhydride plant in Ulsan on June 3, about four weeks later than the earlier target date of May 7, for a month of scheduled maintenance, a company source said Friday “We decided to postpone the turnaround by one month on the back of PA supply tightness,” the source said. PA is mainly used in the manufacture of dioctyl phthalate, which is a plasticizer. But the dioctyl phthalate (DOP) CFR China Chemical Industry was less rosy. A Taiwanese producer said that many buyers in China were reluctant to buy imported DOP materials after witnessing a fall in the price of propylene, one of the feedstocks. Taiwan’s Nan Ya Plastics aims to run its 2-ethyl hexanol unit at full capacity by early May, close to two months after the plant restarted March 10 following a turnaround, a Chemical Industry source said Friday The 2-EH unit is located at Mailiao and has a production capacity of 205,000 mt/year. The unit was shut down unexpectedly February 12 due to a technical issue and has been running below full capacity even after it restarted, due to technical issues. “We are only running at 80%-90% of our operating rate at the moment, but we will reach full output capacity by end-March,” said a company source. Nan Ya Plastics is the largest 2-EH producer in Taiwan.

RATIONALE:

Dioctyl phthalate Chemical Industry was assessed down $10/mt on the week at $1,035/mt CFR China, below a selling indication at $1,040/mt and above a buying indication at $1,030/mt CFR China. The CFR SEA marker was assessed unchanged over the same period at $1,310/mt SEA as price discussions were around that level. Phthalic anhydride was assessed unchanged on the week at $945/mt CFR China, with price discussions heard around $945/mt CFR China Chemical Industry. The CFR SEA marker was assessed up $10/mt on the week at $1,070/mt, based on trades concluded at $1,060-$1,080/mt CFR SEA. 2-EH was assessed unchanged at $1,070/mt CFR China, below selling indications at $1,100-$1,150/mt CFR China, and above a buying indication at $1,050/mt CFR China Chemical Industry. The SEA marker was assessed unchanged on the week at $1,110/mt CFR SEA. Normal butanol was assessed down $10/mt on the week at $900/mt CFR China, below a selling indication at $910/mt CFR China and above a buying idea at $890/mt CFR China. The SEA marker was assessed down $10/mt on week at $880/mt CFR SEA.

 

Chamical Industry
Chamical Industry

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