21 October 1996 00:00 [Source: ACN]
WEAK dioctyl phthalate markets are expected to deteriorate further in November because of high plasticiser inventories and sluggish PVC sales.
Demand for DOP is already very low in Asia. Most buyers still have sufficient stock to hold out well into November.
Prices for material in drums in Hong Kong dropped to US$800-830/tonne cif for October delivery. Taiwanese buyers are resisting offers for drums at US$900/tonne cif Taiwan, which are higher than in other parts of Northeast Asia. One bulk deal for October was reported at US$810/tonne cfr Taiwan.
New capacity coming onstream in Q4 is likely to bring prices down. Samad - the Sabic and Taiwan Fertiliser Co (TFC) joint venture - is expected to start shipping to Asia this month from its new 50 000 tonne/year plant. Sabic's marketing arm in Asia will have 800-1000 tonne available for October lifting. TFC will offtake 10 000 tonne/year from the Samad plant. The August startup of LG Chemical's 70 000 tonne/year plant has already weakened prices.
Feedstock prices are also under pressure. Many buyers stocked up on 2-ethylhexanol, expecting price hikes in Q4. Prices of 2-EH at US$650-670/tonne will not get a boost with PVC markets in the doldrums, a buyer said.
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