Polycarbonate prices plunge

21 October 1996 00:00  [Source: ACN]

POLYCARBONATE prices have dropped by over US$300/tonne to US$3000/tonne cif Hong Kong for October, forcing at least one producer to cut operating rates to manage inventories.

Buyers are pushing hard for further reductions in November prices and some producers fear that markets will stay weak at least until mid-1997.

Dow Chemical said it has cut the operating rate at one of its plants temporarily to 80% to manage inventories, but was running its other plants at full capacity.

PC prices came under pressure earlier this year after global supply increased when GE Plastics started up a 70 000 tonne/year plant in Mount Vernon in the US in Q1 this year (ACN 29 Jan, p19).

Producers held Q1 prices at US$3700-3800/tonne cif Hong Kong, but were unable to secure increases in Q2 despite tight supply in Asia during maintenance turnarounds in Japan. Q2 prices rolled over at US$3700-3800/tonne cif Hong Kong.

Prices dropped to US$3500/tonne cif Hong Kong in Q3 as buyers stayed away. Further erosion cut prices to only US$3300/tonne cif Hong Kong by the end of the quarter.

Players said that global demand for PC this year is lower than industry expectations. Supply is temporarily loose and prices have fallen as a result.

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