South Korean producers shut PX units for turnarounds

South Korea's largest paraxylene (PX) producer SK Global Chemical today shut its 400,000 t/yr unit in Ulsan for a scheduled 45-day maintenance.

SK Global Chemical also operates a 1.3mn t/yr unit in Incheon and another 400,000 t/yr plant in Ulsan. Additionally, its Ulsan Aromatics complex has a production capacity of 1mn t/yr for PX. SK Global Chemical has 50pc stake in the complex, a joint venture with Japanese refiner Eneos.

Hanwha Total, the second-biggest PX producer in South Korea, will start a 45-day turnaround at its 1.2mn t/yr PX unit in Daesan from 24 May. The producer's smaller 700,000 t/yr PX unit in Daesan will continue to operate as usual.

South Korean exports may fall in May-June because of the maintenance shutdowns. These are expected to lead to a supply shortage of around 200,000t, according to Argus' calculation, which will reduce manufacturers' domestic and export sales.

The country's PX exports in April declined by 4.68pc from March but remained 4,000t above its year-on-year average at 574,000t, according to GTT data, supported by healthier margins that boosted production rates at most suppliers in the Asia-Pacific region.

By Suzi Shin