Xiang Lu June PTA contract down CNY50/tonne

25 June 2007 09:34  [Source: ICIS news]

SINGAPORE (ICIS news)--Purified terephthalic acid (PTA) maker Xiang Lu Petrochemical has finalised its June contract price down yuan (CNY) 50/tonne ($6.55/tonne) from the previous month, a company official said on Monday.

The producer posted its price as CNY 8,950/tonne delivered (DEL).

“Although demand had been weak in the past month, feedstock costs had also been very high and we need to look at protecting our margins,” the official said.

PTA spot prices had hovered around CNY8,400-8,450/tonne ex-warehouse (EXWH) since early June, while feedstock paraxylene (PX) costs had hit as much as $1,300/tonne CFR Taiwan and China before retreating  recently to around $1,150/tonne.

Last week, fellow PTA producer BP Zhuhai also cited higher feedstocks costs as one of the reasons behind its higher June price of CNY9,100/tonne DEL, which was up CNY100/tonne from its May number.

Earlier on Monday, Sinopec finalised its June price as CNY8,800/tonne DEL, attributing the price drop to poor demand among its customers.

As of 15:30 hours in Beijing (07:30 GMT), Hualian Sunshine Petrochemical was the remaining PTA supplier in the Chinese domestic market that had yet to name its June price.

The four producers supply almost two thirds of the locally-produced PTA. They also name a monthly price for contract volumes.

($1 = CNY7.63)

By: Salmon Aidan Lee
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly