Tight supply keeps China 2-EH high, weighs on DOP

21 May 2008 08:47  [Source: ICIS news]

SHANGHAI (ICIS news)--Tight supply continued to keep support high domestic Chinese 2-ethylhexanol (2-EH) prices, said traders on Wednesday.

2-EH prices stood at yuan (CNY) 16,700-16,800/tonne ($2,396/tonne) ex-warehouse (EXWH), slightly up from CNY16,500-16,600/tonne last week, with retail cargoes traded at CNY 16,900-17,000/tonne ($2,425/tonne) EXWH in east China. 

The main traded prices remained at CNY 16,650-16,750/tonne EXWH in north China.

Local producers Jilin Petrochemical and Daqing Petrochemical’s switch to n-butanol (NBA) production added to the tight situation.

South China in last week saw tight 2-EH supply and no arrivals of cargoes. Meanwhile, no deals were done on lack of downstream affordability for oxo-alcohols.

North China, however, maintained a balanced market between supply and demand,with downstream producers buying on a need-to basis.

Downstream dioctyl phthalate (DOP) producers increased offers CNY 100-150/tonne to CNY 15,500/tonne to strengthen margins on higher-priced feedstock 2-EH cargoes.

The softening DOP market is offsetting the ongoing tightness in domestic 2-EH, said traders.

($1 = CNY6.97)

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By: Dolly Wu
+65 6780 4359

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