Editor Liu Xin, xin.liu@icis.com

       NOTE: For full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.

Asian bis-phenol A (BPA) spot prices edged down $30/tonne as recent declines feedstock benzene values and stagnant domestic prices in the key China market dampened buying sentiment.

Producers stood by offers at $1,700-1,750/tonne CFR China Main Port (CMP) on the back of snug supply due to impending turnarounds at regional plants. Most regional plants were running at full rates with some at a lower of 80% amid healthy demand from the downstream polycarbonate sector.

End-users from the downstream epoxy resins sector were largely sidelined as they were unable to pass on the rise in feedstock costs. Buying ideas were capped at $1,600-1,620/tonne CFR CMP, with some end-users indicating that they would rather procure competitively-priced local material rather than imported cargoes.

The bulk of trades were heard at $1,650-1,680/tonne CFR CMP to export oriented epoxy resin producers or traders, with sporadic deals heard at $1,620/tonne CFR CMP. A 495-tonne regional lot was heard sold at $1,650/tonne CFR CMP to a southern China-based end-user earlier this week. By mid-week, another 600-tonne lot was fixed at $1,680/tonne CFR CMP to an eastern China-based end-user for March lifting. A 300-tonne northeast Asian parcel was sold at similar level for March shipment. Discussions were underway for a 500-tonne regional lot at $1,680/tonne CFR CMP. A 300-tonne northeast Asian cargo was heard to have changed hands at a low of $1,620/tonne CFR CMP, although this could not be confirmed.

As for deep-sea cargoes, an unconfirmed 300-tonne lot was heard at $1,670/tonne CFR CMP for March arrival. An offer was heard at $1,710/tonne CFR CMP early this week, but failed to entice buying interest, market sources said.

Domestic prices in east China edged up yuan (CNY) 100-200/tonne at CNY14,000-14,300/tonne ex-warehouse week-on-week, although sentiment turned cautious from mid-week in tandem with the dip in feedstock benzene values. Some traders were heard to be eager to offload cargoes at CNY14,000-14,100/tonne ex-warehouse in a bid to lock in profit.

Operating rates of local epoxy resins plants were hovering at an averaged 70% amid languid derivative demand. The recent declines in co-feedstock epichlorohydrin (ECH) prices also capped demand for BPA. Epoxy resins producers said they would keep lean inventories of ECH as they anticipated further price declines in the coming weeks.

On the feedstock front, benzene prices fell $40-45/tonne to $865-875/tonne FOB Korea on Friday, widening the BPA-benzene spread to $785-825/tonne. Buying sentiment was cautious, given the prevailing comfortable margins. Producers however, reiterated that they were not prepared to cut prices due to tight supply-demand balance in the near term.

In the downstream polycarbonate market, optical grade prices increased by $50-100/tonne to $2,450-2,670/tonne CIF Hong Kong/Taiwan, while GP moulding grade values rose $50/tonne to $2,800-2,900/tonne CIF Hong Kong during the week to Wednesday.

($1=CNY6.83)

Production news:

Mitsui Chemicals plans to shut its 90,000 tonne/year BPA plant at Chiba due to lack of feedstock phenol from 24 March to 11 May. The company’s 65,000 tonne/year BPA plant at Osaka is scheduled for maintenance from 20 June to 21 July.

Production data:

Mitsui Chemicals plans to shut two of its BPA production lines in Singapore for annual maintenance in June, a company source said. The No 1 line would be shut from 1 June to 2 July, while the No 2 line would be taken off line on 11 June up to 12 July. Its No 3 line at the same site was shut down on 5 January and restarted in early February.

Kumho P&B Chemicals plans to shut its No 2 and No 3 BPA lines at Yeosu on 7 May for a three-week long annual maintenance. The No 2 line has a BPA nameplate capacity of 130,000 tonnes/year, while the No 3 line can produce 150,000 tonnes/year of BPA.

Chang Chun Plastics plans to shut down its 135,000 tonne/year No 1 BPA line in October for a month-long turnaround. The firm's 135,000 tonne/year No 2 line would not undergo a turnaround this year.

Taiwan Prosperity Chemical Corp (TPCC) plans to shut its 90,000 tonne/year BPA production facility in mid-December for a month-long turnaround.

Nan Ya Plastics plans to shut its 100,000 tonne/year No 2 line from September to October for maintenance though the exact shutdown date was not firmed yet. Its 130,000 tonne/year No 4 line would be shut in September for two weeks. There was no shutdown scheduled for its 90,000 tonne/year No 1 line at the same site. Its 100,000 tonne/year No 3 line at the same site was originally scheduled for a turnaround from March to April although the shutdown was cancelled as supply was expected to be tight due to impeding turnarounds at other regional plants. The No 3 line would not undergo turnaround this year.

LG Chem plans to shut its 280,000 tonne/year BPA plant at Yeosu on 21 March for a 21-day turnaround, a company source said.

Mitsubishi Chemicals plans to shut its 100,000 tonne/year BPA facility in Kashima in the second half of May for annual maintenance, a company source said. The plant would remain off line until the end of June. Mitsubishi runs another plant in Kurozaki, which produces 120,000 tonnes/year of BPA. The plant would be shut in early October for a month-long maintenance.

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