Prices rise on firm feedstock; sentiment weakens on increased availability
Asian spot bisphenol A (BPA) prices strengthened for a third week running as lower-priced cargoes disappeared from the market as a result of the recent spike in feedstock costs and firm domestic values in the major China market.
However, buyers are becoming increasingly resistant to further price hikes because of sluggish demand from the downstream epoxy resins and polycarbonate (PC) segments.
The uptrend in the China domestic market lost its momentum in the later half of the week as the impending arrival of imported cargoes in subsequent weeks weighed on sentiment. Buyers are keeping a cautious stance in view of an anticipated increase in supply and uncertainties in the price outlook.
Separately, Nan Ya Plastics may face further delays in the restart of its 100,000 tonne/year No 3 and 130,000 tonne/year No 4 lines at Mailiao in Taiwan following a pipeline blast at the site late on 26 July. The impact of the delay on regional supply-demand balance is not immediately clear given the poor business performance in the downstream epoxy resins and PC sectors, sources said.
China
Regional 200-300 tonne parcels were booked early in the week at $2,095-2,100/tonne CFR China for August shipment, while a 2,000 tonne northeast Asian cargo was heard sold at $2,100/tonne CFR China for August loading.
A 208 tonne regional lot was heard fixed at $2,110/tonne CFR China for August lifting. A total of 900 tonnes of regional material changed hands in early week at $2,110-2,120/tonne CFR China.
Two 200-500 tonne deep-sea parcels were sold at $2,100/tonne CFR China, while a separate lot was heard booked at $2,100-2,120/tonne CFR China for end July/August shipment.
Meanwhile, a 500 tonne bonded warehouse cargo was sold at around $2,100/tonne CFR China.
Offers tumbled to $2,050-2,060/tonne CFR China for regional bulk shipments in the later half of the week, while those for bonded warehouse cargoes similarly fell to $2,080/tonne CFR China, in line with weakened sentiment in the domestic market.
Buyers retreated to the sidelines amid an uncertain price outlook. The majority of buyers acknowledged that cargoes were not widely available at below $2,050/tonne CFR China despite subdued buying appetite towards the end of the week.
Chinese domestic prices slipped by yuan (CNY) 200/tonne at the high end of the range to CNY16,800-17,100/tonne EXWH as some traders were offloading cargoes to lock in profits, sources said.
Separately, June BPA imports into China rose by 17% month on month to 41,581 tonnes. The figure is 55% higher as compared with the same period a year earlier, according to data from China Customs.
Northeast Asia
A 500 tonne regional cargo bound for the Middle East was sold at $1,950/tonne FOB NE Asia for August loading.
Selling ideas were largely maintained at above $2,000/tonne FOB NE Asia, but a slowdown in demand from Europe and the Middle East kept trades subdued.
Upstream
Spot benzene prices rose by $30-35/tonne to settle at $1,210-1,215/tonne FOB Korea on Friday, while phenol prices jumped by $90-100/tonne to $1,730-1,790/tonne CFR China.
Downstream
Optical-grade PC prices were stable at $2,900-2,950/tonne CIF Hong Kong, while prices in Taiwan fell by $30-50/tonne to $2,750-2,900/tonne CIF Taiwan. GP moulding-grade prices were flat at $2,950-3,050/tonne CIF Hong Kong.
The prices of LER exports from northeast Asia rose by $50/tonne to $3,200-3,300/tonne FOB NE Asia.
($1 = CNY6.44)
This week in ICIS news ( www.icis.com ):
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28-Jul-11 10:18 Japan's Mitsubishi Gas shuts Matsuyama plant, to restart 10 August
27-Jul-11 08:13 Taiwan's Formosa restart plans may get delayed by fire
26-Jul-11 07:12 China June petrochemical imports fall; price spikes deter buyers
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