FocusChina ECH prices surge on tight supply

09 October 2007 09:24  [Source: ICIS news]

By Liu Xin

 

SINGAPORE (ICIS news)--Major Chinese epichlorohydrin (ECH) producers have raised offers by more than 12% due to tight supply, market sources said on Tuesday.

 

Domestic price offers have been raised to Chinese yuan (CNY) 17,500-18,000/tonne ($2,333-2,400/tonne) delivered (DEL) east China – up CNY 500-2,000/tonne compared with levels before the week-long national holidays from 1-7 October, said Chinese sellers.

 

Persistent shortages of import cargoes from Japan, Korean, Taiwan, and Russia have tightened spot availability and production problems at major Chinese producers have further squeezed supply, they added.

 

Jiangsu Yangnong Chemical, a Chinese ECH major has been forced to run its 60,000 tonne/year facilities at reduced rates due to feedstock glycerine shortages, a company official said.

 

The two units at Yangzhou, Jiangsu province, with a combined capacity of 60,000 tonne/year were scheduled to shut for ten days from 10 October for annual maintenance, he added.

 

Yangnong raised offers by CNY 1,000/tonne to CNY 18,000/tonne DEL east China.

 

Bohui Chemical, another Chinese ECH major had shut its No2 ECH unit in Zibo, Shandong province since last week due to mechanical problems, said market sources.

 

A company official confirmed that the 80,000 tonne/year facility was shut without a restart date, but declined to comment further.

 

Its No1 80,000 tonne/year plant at the same site was running at 90% of its nameplate capacity, she added.

 

Bohui lifted offers by CNY 500/tonne to CNY 18,000/tonne DEL east China.

 

Tianjin Bohai Chemical’s 28,000 tonne/year ECH facility in Tianjin province, northern China has been operating at reduced rates due to mechanical problems and surging feedstock values, said a company source.

 

The Chinese ECH producer hiked offers drastically by CNY 2,000/tonne to CNY 18,000/tonne DEL east China on Monday due to tight supply and stable trades.

 

The producer plans to start up a No 2 32,000 tonne/year ECH plant at the same site next month, the company official added.

 

Sinopec Qilu Petrochemical was currently running its 32,000 tonne/year unit in Shangdong province at full capacity, sources close to the company said.

 

However, production might be affected in October for 4-5 days when its upstream chlorine facilities undergo a scheduled turnaround, sources close to the company said.

 

Offers of Qilu ECH material surged by CNY 2,000/tonne to CNY 18,000/tonne DEL east China, the producer said.

 

Jiangsu Sandie Chemical had shut its 25,000 tonne/year ECH plant on 3 October for a 12-day turnaround, in line with the shutdowns of its upstream chlorine units, said a company official.

 

The facility, located in the eastern province of Jiangsu, started commercial production in June.

 

All of the output from Sandie’s ECH plant is meant for captive use at Jiangsu Sanmu’s epoxy resin units in the same province.

 

Xinyue Chemical was running its 40,000 tonnes/year ECH facility at Binzhou, Shangdong province at full rate, a company source said on Tuesday.

 

The producer increased offers by CNY 1,000/tonne price to CNY 18,000/tonne DEL east China, the source said.

 

($1 = CNY7.50)

By: Liu Xin
+65 6780 4359

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