China’s Dragon Aromatics’ PX plant hit by explosion
The plant, which houses two PX units with a total production capacity of 1.6 million tons/year, had been shut on March 14, 2015 for maintenance. The plant was initially slated to remain offline for around one month. However, the explosion is now expected to extend the duration of the maintenance. According to a market player, Dragon’s PX capacity in Zhangzhou makes up 12% of China’s total PX production capacity.
A distributor based in Taizhou, China reported that local PET prices edged up around CNY100-200/ton ($16-32/ton) following the PX explosion in Fujian. “We believe that PET prices will witness further increases in the days ahead as shorter PX supplies will eventually affect PTA and PET markets.”
A Shanghai based trader, meanwhile, reported that Ningbo Formosa PTA shut its 1.2 million tons/year PTA plant on April 7 due to the shutdown at Dragon Aromatics’ PX unit. The plant is expected to remain offline until the end of the month. He also stated that China’s Xianglu shut its 4.5 million tons/year PTA plant in Gulei on April 6 while the company has not slated a restart date yet. “We think that local PET prices may see increases of up to CNY300-400/ton ($48-64/ton) this week as upstream prices are likely to firm up on the back of these unexpected shutdowns.”
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