Editor Heng hui, hui.heng@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”.

Market summary
Asian adipic acid values hiked by another $100/tonne this week on the back of tight supply due to impending turnarounds. This marked the second consecutive increase amid low supplies, traders said.

The reduction in adipic acid supplies brought on by the scheduled turnarounds would keep the market firm in the next few months, traders and producers said. Buyers said they were resigned to these price increases, citing there a lack of alternatives.

Operating rates at local downstream polyurethane plants were said to be at 70-100% and expected to ramp up during the traditional manufacturing months of March and April. Business was brisk particularly in China. This was another factor exerting upward pressure on international prices, said market participants.

Deep sea trades continued to be rare, though a Taiwanese buyer said he was currently negotiating at $2,200-2,300/tonne CFR Taiwan for May delivery from Europe.

On the feedstock front, benzene price range was narrowed at $905-950/tonne FOB Korea last Friday, widening the adipic-benzene spread to $1,350-1,495/tonne.

In related markets, prices of spot Asian nylon chips for March delivery were assessed at $2,670-2,700/tonne CFR China.

Spot

Northeast Asian producers stood by offers above $2,400/tonne CFR NE Asia as they saw a frenzy of buying activity particularly in China due to the hike in domestic prices. The impending turnarounds at some regional plants in March curtailing spot supply also fuelled buying sentiment. Suppliers reported insufficient spot volumes to cope with the demand. Though most production was heard to be running close to full rates, producers cited the need to build supply during those shutdown periods, resulting in only small spot parcels sold.

A producer reported offers at $2,500/tonne CIF China/Taiwan, though confirmation could not be sought. A buyer said he bought at $2,300/tonne CFR Taiwan.

In Korea, March offers were at $2,600/tonne DDP (delivered duty paid), an increase of $200/tonne from the previous month. The seller acknowledged the traded price might not reflect the nominated price, though he was confident of achieving an increase.

Some 10 deep-sea containers from Europe loaded earlier were heard to have been sold at $2,350/tonne CFR Ulsan and arriving this week.

Domestic prices in east China were hiked yuan (CNY)1,000-1,500/tonne at CNY 20,000-21,300/tonne ex-warehouse due to the spike in offers from producers.

Contract

March contracts were targeted at $2,100-2,200/tonne CFR NE Asia due to tight supply, said producers.

Domestic China producers’ nominations for March were at CNY18,000/tonne EXW, with the actual purchase price settled at the end of the month.

Production news:

Rhodia Polyamide plans to shut its 140,000 tonne/year adipic acid (ADA) plant in Onsan, South Korea for 10 days of maintenance in March.

Asahi Kasei will take its 120,000 tonne/year plant in southern Japan offline for a scheduled maintenance from end April to early June.

($1 = CNY6.83)

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17-Feb-10 23:59 Europe Feb adipic acid up €50/tonne, supply situation critical