22 April 2008 04:56 [Source: ICIS news]
By Jeremiah Chan
SINGAPORE (ICIS news)--Asian bisphenol-A (BPA) prices are falling and the downtrend is expected to continue into the second half of the year amid plunging demand in the key China market, market sources said on Tuesday.
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Regional producers - realising that demand from the downstream epoxy resin and polycarbonate industries was plummeting, have considered reducing their operation rates to avoid inventories from building up.
“I’ve been trying to offer our cargoes close to our cost price, but nobody is willing to buy,” the marketing official from a Taiwan-based producer said in Mandarin.
Other producers in the region share the sentiment, choosing to cut operation rates in order to stave off inventory pressure.
“We are reducing our production rates, hoping to drive prices up,” an official from one of
A regional BPA trader based in
Most BPA traders saddled with material were heard to be avidly offloading their cargoes, eager to avoid further losses as they anticipated further drops in prices, and lacking holding power due to the Chinese government’s tight credit policy implemented late last year in order to curb economic growth and inflation.
“Traders are offering cargoes at low prices, but I don’t think anybody is too willing to buy too much material since the outlook is poor,” the procurement manager from Kingboard Chemicals, one of
Concerns over weakening global demand due to recent controversies on the toxicity of BPA used in food container applications, as well forecasts on an impending supply overhang when scheduled new capacities come on stream in the third quarter also served to drive prices down, traders said.
Domestic fixtures in
($1 = CNY7.00)For more on BPA, epoxy resins and PC, visit ICIS chemical intelligence.
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