China's Ningbo Mitsubishi Chemical will continue to run its 600,000 mt/year purified terephthalic acid plant in Ningbo, China, at full capacity for now despite negative margins, a source close to the company said Friday.
The source said the 100% run rates at the plant -- which was restarted early June following a turnaround that began mid-May -- pointed to lower PTA import volumes into China.
China's May PTA imports rose 12.1% from a month earlier to 385,924 mt, according to Chinese Customs. But industry sources said China's PTA imports are expected to fall from June as PTA producers in Taiwan and South Korea -- key PTA exporters to China -- have reduced PTA plant operations due to negative margins amid high paraxylene feedstock costs.
According to Platts data, the PTA margin averaged minus $49.97/mt in June, worsening from minus $26.63/mt in May.
