US petrochemical producer Formosa Plastics Corporation is expected to start operating its chlor-alkali and ethylene dichloride unit at additional capacity in Point Comfort, Texas, by mid-July, a company source told Platts.
After its 25% planned expansion capacity has concluded, the total production of the chlor-alkali plant will be 200,000 st/year, while an additional 25% capacity expansion to produce EDC will translate into 280,000 mt/year, the source said.
Meanwhile, Shintech was also expected to complete this year the construction of a second vinyls plant at Plaquemine, Louisiana.
Once operational, the second plant is expected to produce 800,000 mt/year VCM, 530,000 mt/year of caustic soda, and 600,000 mt/year of PVC.
With the total cost of investment close to $1 billion, the Plaquemine plant was expected to start up during the second half of the year, however, confirmation from the company was not immediately available.
Some traders have anticipated lower chlor-alkali and EDC prices during the second semester of the year due to Formosa and Shintech's new capacities.
However, some producers considered that the additional production would be for internal consumption for both companies.
In the first semester of this year, chlor-alkali prices remained relatively stable despite supply tightness due to production issues.
According to Platts data, from January to June of 2011, chlorine prices averaged $240/st FOB Plant, caustic soda at $450/mt FOB USG, and ethylene chloride prices were pegged at $400-450/mt FOB USG.
