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Yisheng Petrochemical to shut a 650,000 tpa line at Ningbo from December 15 to January 15

November 22/2011

(Plastemart) -- Yisheng Petrochemical will shut a 650,000 tpa line at Ningbo from December 15 to January 15 due to negative margins, as per Platts. Yisheng Ningbo comprises three PTA lines, two of which can produce 650,000 tpa each, and the third 2 mln tpa. Separately, it will reduce output at its 2 mln tpa Dalian plant by 20,000 tons in December and another 20,000 tons in January, equivalent to a 12% cut in production rate.

Domestic PTA prices are around Yuan 8,100/mt (US$1030/mt on an import-parity). But feedstock PX was assessed at US$1396/mt CFR Taiwan/China. Based on a conversion factor of 0.66 and a conversion cost of $150/mt, this means that PTA makers must break even at $1,071/mt. PTA has been under pressure from high feedstock prices and poor demand from polyester makers.

Perspectives of development of the polymers markets, pricing issues and other important aspects will be discussed at The Polymers Summit-2011, which will be held in Moscow on November 30, 2011 at the Ritz Carlton Hotel. The Summit is organized by MRC with the support of ICIS. The main idea of the Summit is to find a "the golden mean" between producers and converters. When producers receive exactly such margin of production, which helps them to invest in production expansion in order to substitute polymers imports, and the converters receive such price of feedstock that helps them to compete imported finished products. The Summit site gives an access to the live video of the Summit, speakers' presentations, as well as opportunities to ask questions or make appointments to any Summit partcipant.

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