MOSCOW (MRC) -- South Korea's HC Petrochem has further cut runs at its No 2 aromatics plant at Daesan to 80%, due to weak production margins for paraxylene, reported Plastemart.
The company first cut the run rate at the No. 1 unit to 90% from 100% on August 1 due to weak margins, further reducing it to 80% on August 9. The lower rate could be in place until the margin improves.
The No. 2 aromatics plant is able to produce 800,000 tpa of PX and 120,000 tpa of benzene.
As MRC reported previously, South Korea's paraxylene exports for January-March totaled 806,657 mt, surging 60.5% from a year earlier and up 41.4% from the previous quarter. The sharp increase was due to the startup of a new PX plant there. South Korea's HC Petrochem, a 50:50 joint venture between Hyundai Oilbank and Japan's Cosmo Oil, started commercial operations at its new 800,000 tpa PX plant in Daesan on January 8. Most of the new output from the plant is shipped to China.
HC Petrochem manufactures and markets paraxylene. The company was founded in 2009 and is based in Seosan Si, South Korea. HC Petrochem is a joint venture between Cosmo Oil and Hyundai Oilbank.