Hualian Sunshine sets June PTA lower at CNY8,800

26 June 2007 12:50  [Source: ICIS news]

SINGAPORE (ICIS news)--Chinese purified terephthalic acid (PTA) producer Hualian Sunshine Petrochemical has lowered its contract price for June in the domestic market by yuan (CNY) 200/tonne ($26/tonne), a company source said on Tuesday.

 

Its price of CNY 8,800/tonne delivered was down CNY200/tonne from the previous month but on a par with Sinopec's contract price.

 

The source did not provide a reason behind the price drop, but one of its customers said that Hualian Sunshine’s sales staff had told him earlier this week that its "[June] price would be in line with that of market leader Sinopec”.

 

But the price by Hualian Sunshine, which operates three lines in the eastern Chinese city of Shaoxing with a total capacity of 1.8 million tonnes/year, is lower than that of two other PTA producers, Xiang Lu Petrochemical and BP Zhuhai.

 

Xiang Lu finalised its June price as CNY8,950/tonne delivered yesterday, while BP’s June price was CNY9,100/tonne delivered.

 

Demand for PTA has been weak in the past month, with domestic prices hovering at CNY8,400-8,500/tonne ex-warehouse for the most of June. The contract prices by the four producers have had little impact on spot numbers so far, which stayed stagnant as of 18:00 Beijing time.

 

($1 = CNY7.62)

 

By: Salmon Aidan Lee
+65 6780 4359

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