23 May 2008 05:50 [Source: ICIS news]
By Jeremiah Chan
With most end-users expecting values to fall amid an anticipated supply overhang due to scheduled plant expansions in late second quarter to third quarter, regional sellers were finding it increasingly difficult to raise prices.
Weakening global demand due to controversies in the
“We cannot sell BPA above $1,800/tonne CFR (cost and freight)
He added that the company was considering cutting production rates rather than to continue selling cargoes at a loss.
The spread between benzene and BPA prices – traditionally quoted at a minimum of $600/tonne in order for most producers to make minimal profits – has narrowed to the high-$400s/tonne after benzene recently hit a 12-year high.
Benzene prices were assessed at $1,320-1,335/tonne FOB (free on board)
Coupled with high energy costs and propylene prices surging above the $1,500/tonne
“Although buying ideas from most end-users and traders [in
He added that Japanese major Mitsui Chemicals had recently announced a yen (Y) 24/tonne increase to domestic customers due to higher manufacturing costs with effect from July this year.
Other traders agreed, with a Chinese BPA trader saying that regional producers would likely hike their offers by next week due to cost increases.
“If they [BPA producers] are still unable to reach higher prices in
($1 = Y104.30)
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