MOSCOW (MRC) -- South Korea's HC Petrochem plans to further cut runs at its No 2 aromatics plant at Daesan to 70% from early next week, due to weak production margins for paraxylene, as per Plastemart.
"Operating at 70% capacity is the lowest level mechanically. We have no choice but to cut runs further as improvement of the PX-MX spread seems unlikely in short term," said a company official.
The No. 2 aromatics unit has been operating at 80% of capacity since August 12, following an initial cut from 100% to 90% on August 1.
The No. 2 aromatics plant, which began commercial operations January 8, 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.