OREANDA-NEWS.  Japanese petrochemical producer Mitsui Chemical has shut its Osaka olefins conversion unit (OCU) today because of negative margins.

The OCU has a capacity to produce 140,000 t/yr of propylene. Mitsui Chemical has no plan to restart the unit for the rest of this year.

Asian propylene prices have firmed up slightly to $600/t cfr northeast Asia after dipping to a seven-year low at $520/t cfr northeast Asia in late September, but they can hardly cover the minimum production costs for OCUs at $750/t.

Fellow Japanese producer JX in early October took off line a 140,000 t/yr OCU, while South Korea's YNCC also plans to shut a similar size OCU unit on 2 November. Another three South Korea-based OCUs are currently running at reduced rates of 50-60pc.