Snug supply, high feedstocks drive up Asia MIBK

19 September 2007 07:31  [Source: ICIS news]

SINGAPORE (ICIS news)--Snug supply and high feedstock naphtha and acetone costs are driving up methyl isobutyl ketone (MIBK) prices in Asia, buyers and sellers said on Wednesday.

Chinese prices have moved up from $1,360-1,370/tonne CFR (cost and freight) to $1,380-1,410/tonne CFR in the past two weeks on the back of limited supply, said a regional seller.

Deep-sea availability from the US has been limited resulting in low inventories, a local Chinese distributor said.

Supply from LCY in Taiwan has also been very limited after the company reduced operating rates due to margin erosion amid high feedstock acetone costs, said a source close to LCY.

Acetone prices have been firm at $945-1,000/tonne CFR China/SE (southeast) Asia, staying above the psychological $900/tonne CFR mark for the past four months according to ICIS pricing.

Additionally, naphtha prices have jumped to above $700/tonne CFR Japan on the back of surging crude values, said regional sources.

“It’s difficult to get MIBK at prices below $1,380/tonne CFR SE Asia,” said another southeast Asian distributor, although downstream demand from the solvents sector has been lacklustre.

The main MIBK sellers in Asia include Mitsui Chemicals, Mitsubishi Chemical, LCY Taiwan, Dow, Shell and Sasol.

By: Anu Agarwal
+65 6780 4359

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