FocusEurope-to-Asia 2-EH flows reach new levels

18 April 2008 15:52  [Source: ICIS news]

By Adal Rafiq

LONDON (ICIS news)--European exports of 2-ethylhexanol (2-EH) continued to rise, following recent 12-year price highs in Asia due to tight supply, a European seller said on Friday.

According to a seller, 1,500 tonnes of 2-EH were fixed to an undisclosed Asian buyer for $1,880/tonne (€1,184/tonne) on a cost and freight (CFR) basis.

"The Far East is desperate for product," said the source. "And they are willing to pay these prices because local producers have increased their prices by CNY 500/tonne [$70/tonne]."

"$1,880/tonne CFR - this is the highest price we have ever seen and we didn’t think they would go that high."

This may have been the highest seen by the seller, but according to global chemical market intelligence service ICIS pricing, prices hit similar levels in 1995, reaching $1,850/tonne on a free on board (FOB) basis.

As an indication of the level of desperation among Asian buyers, the source noted that shipment would occur next week, "a pretty quick turn of events".

Prices in Asia were last assessed at $1,820-1,845/tonne CFR east Asia.

Domestically, European 2-EH prices were relatively stable although the market remained extremely tight with stock builds at one site and rumoured production problems at another. Prices were last asssessed at €1,270-1,300/tonne on a free delivered (FD) northwest Europe (NWE) basis.

Asian demand for n-butanol (NBA) from Europe was also strong, but there was little material available for prompt deliveries.

According to other commentators in Europe, the massive demand for 2-EH in Asia has prompted some Asian producers to favour 2-EH production over NBA.

"If this is the case," said the seller source, "then NBA will get shorter and prices will rise."

($1 = €0.63)

For more on 2-EH visit ICIS chemical intelligence

By: Adal Rafiq
+44 20 8652 3214

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