DATE : 2014-09-18
Japan’s Showa Denko will shut its 175,000 tonne/year vinyl acetate monomer (VAM) plant in Oita in March or April 2015 instead of in October this year, according to a company official on Thursday.
The VAM plant was originally scheduled to shut from 5 October to 9 November 2014.
“We are skipping the turnaround because of market situation,” the official said.
Showa Denko had earlier completed a round of VAM plant turnarounds in the first quarter, in line with its cracker shutdown schedule.
Meanwhile, increased competition with suppliers of Chinese products prompted some major producers to reduce prices for October shipments.
Looking ahead, buyers generally anticipate that VAM prices could correct to around $1,300/tonne cost and freight (CFR) SE Asia/NE Asia or below, on account of easing tight supply conditions globally.
Major producers on the other hand, remained optimistic that prices would remain bolstered around the mid-$1,300s/tonne CFR NE Asia/SE Asia, on account of impending turnaround at a VAM plant in Singapore in October.
SOURCE Icis News