Home > Chemical News

Chemical News

China: China's Shandong Hongxin restarts PA line, keeps total runs at 80%

https://www.chemnet.com   Jul 26,2010
China's Shandong Hongxin Chemicals started up one of its 50,000 mt/year
phthalic anhydride lines at the start of this week, and operating rates are
"above 60% of capacity", a company source confirmed Friday morning.


The source added that Shandong Hongxin is likely to raise operating rates
to 70% and maintain them at that level, as demand for phthalic anhydride in
China is still extremely weak.


"Demand from our customers has been weak since the end of the second
quarter and I do not expect any near-term improvements over the next few
weeks. [We] will tweak our [phthalic anhydride] operating rates alongside
changes in end-user demand," said the source.


Shandong Hongxin owns two other phthalic anhydride lines, one which has a
similar production capacity of 50,000 mt/year. The company's third line can
produce 20,000 mt/year of phthalic anhydride.


Shandong Hongxin is understood to be operating its second 50,000 mt/year
phthalic anhydride line at 90% of capacity, while the company's 20,000 mt/year
phthalic anhydride line is scheduled to remain offline indefinitely.


Shandong Hongxin shut its 20,000 mt/year line in mid-May, in order to
decrease its inventory level, which was building up due to weak sales volume
throughout the second quarter.


The source said that Shandong Hongxin aims to maintain its total phthalic
anhydride run rates at 80% of capacity in the third quarter.


Shandong Hongxin has stepped out of the orthoxylene spot market this
week, as the company has already completed its orthoxylene feedstock purchases
for August, over the last two weeks.


The company's phthalic anhydride production facilities are in Shandong,
eastern China.
 Print  |    add to Favorites  |    Close