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(ICIS) -- Asian phthalic anhydride (PA)
and dioctyl phthalate (DOP) producers are preparing for a rough ride as they
move into the fourth quarter of this year, industry sources said on
Monday.
“With such high feedstock orthoxylene (OX) costs, PA producers are
losing money with every tonne of material produced,” a South Korean producer
said.
OX spot prices were assessed at USD 1,575/tonne (EUR1,150/tonne) CFR
(cost & freight) northeast (NE) Asia on 16 September, while PA values were
at USD 1,460/tonne CFR China Main Port (CMP) on the same day, according to
ICIS.
Typically, a tonne of PA is made by using 950kg of OX. A producer then
needs to add USD100/tonne to its price to cover conversion costs. Based on the
assessed OX and PA prices on 16 September, Asian producers are losing USD 136.25
for each tonne of PA they make.
In India, IG Petrochemicals Limited (IGPL) is keeping the production at
its PA plants at 70% of their capacities. IGPL operates two PA lines in Taloja
with a combined production capacity of 116,110 tonnes/year.
In China, Shandong Hongxin is operating its three PA lines, with a total
production capacity of 120,000 tonnes/year, at 70% of their capacities.
South Korea’s Aekyung Petrochemical has lowered the operating rates at
its 150,000 tonne/year DOP plant at Ningbo in Zhejiang province to 50% of its
capacity as it is unable to obtain sufficient feedstock PA.
mrcplast.com
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