MOSCOW (MRC) -- China's Fuhaichuang Petroleum and Petrochemical, formerly known as Dragon Aromatics, shut one of its two PX lines at Gulei, Fujian province on 14 October, reported S&P Global with reference to a source close to the company.
The source added that the shutdown was due to the poor margins caused by the narrow spread between PX and MX.
It was not immediately clear when the plant will restart, but market sources had earlier said the company was planning to shut a line for about one month in October.
The company has two lines that both can produce 800,000 mt/year of PX.
PX is a feedstock for the production of purified terephthalic acid (PTA). PTA is used to produce polyethylene terephthalate (PET), which, in its turn, is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.
According to MRC's DataScope report, Chinese bottle grade PET deliveries to Russia increased 34% in the first eight months of 2019 to 95,600 tonnes. China accounted for 90% of the total imports, compared to 85% a year earlier.
August imports of material from China decreased by 41% to 7,600 tonnes from 12,800 tonnes in July. Jiangsu Sanfangxiang, Yisheng, Wankai and Sinopec were the leading Chinese suppliersof material to the Russian market.
Fujian Fuhaichuang Petroleum Chemical Industry Co. Ltd. refines and distributes petrochemical products. The Company produces benzenes, liquefied petroleum gases, and other products. Fujian Fuhaichuang Petroleum Chemical Industry also provides petrochemical equipment maintenance services.
MRC