Aromatics '06: Nylon, PU to pull China investments

30 June 2006 10:17  [Source: ICIS news]

SINGAPORE (ICIS news)--The nylon fibre and polyurethane (PU) foam chains provide the most attractive investment opportunities in aromatics within China due to rising demand and a shortfall in supply, a ABN Amro Bank official said on Friday.

Feedstocks, such as caprolactam, cyclohexane, nitrobenzene and toluene diisocyanate (TDI), which are used in these chains, were also in tight supply, said Daniel de Blocq van Scheltinga, head of chemicals client coverage.

Cumene and bisphenol-A (BPA) were also attractive areas for investment as demand for polycarbonates (PC) was rising, he added at the 2nd Asian Aromatics and Derivatives Conference. There was also an opportunity to grow in specialty epoxy resins despite an overcapacity in general epoxy resins, he said.

However, phenol and methylene diphenyl diisocyanate (MDI) were less attractive due to substantial capacity build-ups. China could become self-sufficient in phenol by 2008-09, van Scheltinga said.

Investors should also be aware of a possible threat from cheap imports when antidumping duties for TDI and phenol are phased out, he added.

The styrenic and polyester chains were also less attractive due to overcapacity and falling demand, he said.

The conference, which is organised by ICIS and International E-Chem, ends on Friday.

By: Florence Tan
+65 6780 4359

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